We love the idea of bootstrapping here — we even have a guide to it. Recently I have been noticing a movement toward bootstrapping. It seems that it’s the way to go if you want to avoid being “screwed” by the lovely people known as Venture Capitalists (VCs). But is it really? Many people make the argument for bootstrapping and I am mostly inclined to agree with them, at the very least in the idea stage. The biggest argument for bootstrapping is valuation. At the idea stage, valuing your company is more of an art than concrete science. Approaching an investor with an idea that may or may not work is risky for both you and the investor. To quantify that risk, the investor will ask for more of a stake in your company. For them that seems fair because they might lose all their money if this venture of yours doesn’t quite work out.
To read the full, original article click on this link: Figuring out whether to bootstrap or find a VC overlord? Read this first | ventureburn
