Venture Capital or Bootstrapped Software? Pros & Cons
When you set out to build a software product, there is a fork in the road that we all approach. We have a choice to make: the bootstrapped path or the VC route? The answer to this question depends on who you are and what your goals are. Most importantly, it depends on the problem you're trying to solve as well. There is also a newer 3rd option that is growing in popularity. I will discuss that later in this podcast. This could be a great option for bootstrappers that want to build long-term sustainable companies but need some funding to do so. For me, I obviously went the bootstrapped path. Let me explain my reasoning for why this was the right path for me. Let me first say that I'm thankful the VC route exists. I realize that some big, pie-in-the-sky business ideas would not be possible without it. Look at AirBnB, Uber, Spotify . They all took massive capital to build and scale. That's because these products involve network effects, and needed to jump through legal h