YC
Should Your Startup Bootstrap or Raise Venture Capital?
@ Y Combinator
02/06/24
Takeaways
MS
Michael Seibel
02/06/24
@ Y Combinator
The vast majority of businesses should not raise venture capital, as venture capitalists are not interested in investing in most businesses.
MS
Michael Seibel
02/06/24
@ Y Combinator
If your business can appear on 'Shark Tank', you probably shouldn't raise venture capital, as that type of business is not typically suited for VC funding.
MS
Michael Seibel
02/06/24
@ Y Combinator
Most people who are wealthy did not raise venture capital; they often found success through other means such as real estate or professional careers.
MS
Michael Seibel
02/06/24
@ Y Combinator
No one is forcing you to start a VC-backed company; if you prefer bootstrapping, that's a valid choice and can be revisited later if needed.
MS
Michael Seibel
02/06/24
@ Y Combinator
None of the trillion-dollar software companies have been bootstrapped without venture capital; it's important to recognize that achieving such scale typically requires VC funding.
MS
Michael Seibel
02/06/24
@ Y Combinator
If you need to be convinced to start a VC-backed company, it's likely not the right path for you; the motivation should come from within, not external pressure.
MS
Michael Seibel
02/06/24
@ Y Combinator
Creating a successful software product that allows you to live a good life without VC backing is a win; success is not solely defined by venture capital investment.
YC
Y Combinator Cast
02/06/24
@ Y Combinator
Building a successful small business can be just as valuable as a venture-backed startup, and it can generate millions of dollars without needing venture capital.
YC
Y Combinator Cast
02/06/24
@ Y Combinator
The debate over bootstrapping versus raising venture capital often stirs engagement online, but it's important to recognize that this controversy can be exaggerated for promotional purposes.
YC
Y Combinator Cast
02/06/24
@ Y Combinator
Some businesses genuinely require upfront capital to succeed, and venture capital can provide that necessary funding when other options are limited.
YC
Y Combinator Cast
02/06/24
@ Y Combinator
If you're seeking millions of dollars to reach break-even, venture capital is one of the few mechanisms available to secure that funding in today's economy.
YC
Y Combinator Cast
02/06/24
@ Y Combinator
It's crucial to understand that raising venture capital is a business transaction, not a personal one; investors expect a return on their investment based on the potential for profit.
YC
Y Combinator Cast
02/06/24
@ Y Combinator
Founders should not take rejection from venture capitalists personally; it's often a matter of business viability rather than personal merit.
YC
Y Combinator Cast
02/06/24
@ Y Combinator
Engagement bait often highlights extreme examples of funded startups to provoke outrage, but it's essential to avoid getting emotionally involved in these narratives.
YC
Y Combinator Cast
02/06/24
@ Y Combinator
The relationship between founders and investors should be straightforward: if you provide funding, you expect a return, and if that return isn't feasible, the investment won't happen.
YC
Y Combinator Cast
02/06/24
@ Y Combinator
The discussion around bootstrapping versus venture capital should focus on the realities of business needs rather than sensationalized stories that misrepresent the funding landscape.