Do Venture Backed Entrepreneurs look down upon Bootstrapped Entrepreneurs?
Asked of me, on Quora, and I thought, WTF?!
Let’s get something clear because such distinctions are misleading, inaccurate, and aggravating.
ALL entrepreneurs are bootstrapped entrepreneurs.
Every single one.
The only people who start out with funding are privileged and more rare than Unicorns. They aren’t remotely in the same boat as the 99% of us who invest our wealth, reputation, time,and health in starting new ventures.
Some types of new businesses, and some make ups to teams, are suited to investment.
Some are not.
It is neither better nor worse, in any way, to make it without VC nor capably close funding.
All sources of capital have a cost. That includes the cost of having customers who pay the way for a venture that continues to go without funding.
Look down on bootstrapped entrepreneurs??! Applaud those who should be and capably are. I feel bad for those who shouldn’t be but are struggling to achieve otherwise. Celebrate everyone supporting those doing their best to help every entrepreneur find their way (and, frankly, I get aggravated at those who encourage that they ‘know best,’ causing so many to waste time and energy on bad advice).
Capital is a resource, and that resource is not without cost, no matter how it’s acquired. A question of Bootstrap or VC being better only has merit in circles where people are misleading others that one way is in fact so; such circles need to be called out for the harm they cause.
Keep at it since we’re all bootstrapping until we find the degree of success that establishes that we no longer need be doing so.
This question made me pause because it assumes that entrepreneurs are in competition with each other for some sort of status – like it’s a race to an exit wuth the most stock still in hand – and that status is their primary motivation, not building businesses, bringing products to market, attracting and leading great teams and beating stalwarts in categories.
Your last paragraph is so poignant – businesses require capital and all capital has it costs. Capital is a resource.
Nice.
Agreed.
I am curious to get your thoughts about entrepreneurs who don’t even have bootstraps to pull up. They can execute but literally don’t know how to get started since no wealth is available to collateralize. I agree with your sentiment but also want to share another perspective as well.
Good perspective though I’d challenge the notion that “bootstrap” requires wealth. We’re [all] making an investment of our time, experience, reputation, network, etc. and that’s true across the board. EVERYONE does that; that’s my point – and it’s disappointing, in a sense, that people don’t value that as meaningfully (or more) as an investment of money.
Think of it this way… your time and experience is worth as much, more, than the investment of capital. Value that.
Paul O’Brien This was the clarity I was looking for! Thank you. And yes I agree.
Bootstrappin it here! ??????
It is like solo sailors who circumnavigate. You need a very disciplined mindset to be an entrepreneur.
Desr Paul, we thank you dearly brother. ?
One size or method doesn’t fit all, never has, never will. I have a new theory to break this argument and discussion entirely. With verified stories of great innovations and things good and right for the world.
This topic truly is the current “rub” for innovation (especially for social enterprises, but pervasive non the less)
Where are those preachers who professed that boostrap is THE way, and selling entrepreneurs down the river of hopelessness?
Truth is, bootstrap is quite a reckless and often desperate approach to entrepreneurial spirit and true vision, bent around a market filled with a boatload lot of hype. Investors are just waiting for you to fail and swoop in like hawks. That’s the stories I hear and have witnessed most so far. And damn straight, thank you for telling the world the truth. Bootstrapped is no badge, it really means, you didn’t know how to ask for help. Bravo. Not.
Current investors don’t get that they have failed so many businesses by not helping nurture their “deals”. At the end of the day, it’s really sad. We are often all just seen as “deals” walking.
Keep writing Paul O’Brien. I love it ! ?
Love this Mark Courtney … you need to write this up or get on some podcasts, etc. to spread the thoughts!
Paul O’Brien I’m working on getting the support I need so I can breathe and enable others to more readily serve others.