Bootstrapped company vs funded company


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There is a big difference between bootstrapped company and funded company. Let’s take a closer look at both of these-

Bootstrapped Company:

Right from day 1, it’s clear- ‘If we are not going to make money, we are going to out from the business.’
Bootstrapping is generally used to refer to startups. Somebody who has a business idea and implements it with his own money will be called a bootstrapper. A bootstrapping entrepreneur will typically start his business with a minimal upfront investment of his own money. He can even take on partners or acquire modest bank financing.

Funded company:

From day one, they have to spend money. They have some amount of money in the bank and they have to spend it.

Here is a fundamental difference between both mindset, one has to make money, and the one has to spend money.I think, making money is something you can practice, and you can be excellent at over time but if you used to spending it and not good at making it.This is what happen with venture-backed companies, they are really good at spending money when the money runs out they don’t know how to make it, now bootstrapped company eventually good at making money. That’s the right approach to learning by practicing it.

People say that you cannot buy time. In my opinion, you can buy time if you are a bootstrapped company. Because you are paying your bills, you can do what you want. When you are taking money from VC, you are just renting out time. And when they decide you are up; you are up!
That’s just my opinion. Try with your money And try hard before you get money from a VC.

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Mayank

Cofounder | Top writer at Startup, Hackernoon, StartupGrind | Helped 100+ founders to build awesome Web & App products | 30+ funded, 2 selected in Y-Combinator
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