5:48:05 AM PDT - Wednesday, August 17th, 2022

Will once-bootstrapped startups turn to venture during a watershed moment?  

By Editor - Sat Jul 30, 3:52 am

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Bootstrapped startups, or companies that use their own revenue or existing cash flow to fund growth instead of relying on external capital sources, sit in a very separate box than venture-backed startups. By nature of asset class, bootstrapped startups prioritize revenue to keep alive, while venture-backed startups prioritize growth to keep investor buy-in for future runway needs. Bootstrapped companies follow less of an exponential growth curve, while venture-backed companies need to be an outlier. Enter a downturn, and both sides get a tad more interesting. The built-in business discipline of bootstrapped startups may feel especially downturn-proof as the overfunded companies announce rounds of layoffs . As venture starts to be more interested in the stable fundamentals of the startup bunch, is it the bootstrapper’s time to swing big?

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Will once-bootstrapped startups turn to venture during a watershed moment?

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