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boredumb 5 hours ago

As someone who is fully bootstrapped and not looking for funding, I may be oblivious but some of the numbers I see versus the products I see i'm wondering if I should not be using my own capital and see if asking nicely can get me 200 million dollars

swatcoder 4 hours ago | parent | next [-]

As a founder raising those big rounds, you'd enjoy a lot of personal luxury and develop a gtowing network of opportunity.

But the odds of your business catastrophocally collapsing on itself or being aggressively gutted in an acquisition would go sky high, and all those starry eyed people you recruited to help you along the way become way more like to encounter surprise layoffs or unexpected and severe equity dilutions.

A lot of it is really about where your heart is as a human. If you want to take a lucrative cut on selling an image to bigger and bigger investors and don't much care what happens to your idea or any of the "little people" along the way, then you probably should chase those funding rounds. But if you're actually passionate about your vision or have a more compassionate and paternalistic attitude towards the people you convince to work for you, you're doing the right thing with the bootstrapping.

(I'm sure you know all this, though. Nobody bootstraps without thinking about this stuff, and recongizing that that they just can't stomach the tradeoffs of doing otherwise.)

devmor 4 hours ago | parent | prev [-]

If it makes sense for your growth, why not? Just keep in mind that these founders are giving up control and saddling themselves with certain obligations in return.

edoceo 4 hours ago | parent [-]

Obligations that go away when you declare bankruptcy and close the business.

devmor 6 minutes ago | parent [-]

That’s the implication, yeah. If growing to sell and bail out is your goal, do it.

If you like running your business and want to keep what you built, don’t.