Bootstrap Your Tech Startup to Success
sparksense
Where Deep Tech Startups find first customers in Europe and North America. Smart, Global and focused outreach.
Hi!
Welcome to Sparksense's Newsletter! Every month, I personally bring you insights to fuel your sales strategies, drive business growth, and succeed on your entrepreneurial journey.
This month, let’s dive into bootstrapping—how founders build businesses without relying on VC funding, and why frugality is making a comeback.?
China’s DeepSeek is proving you don’t need billions to innovate. With just $5.6M in computing power—compared to the $100M+ spent by US rivals—it has challenged AI giants by building a top-tier model at a fraction of the usual cost. The jury is out on its long-term impact, but one thing is clear: doing more with less is back on the tech agenda.
First, what is Bootstrapping?
According to CFI, Bootstrapping is the process of building a business from scratch without attracting investment or with minimal external capital. It is a way to finance small businesses by purchasing and using resources at the owner’s expense, without sharing equity or borrowing huge sums of money from banks.
“Like steroids, these sudden huge investments can do more harm than good.?Startups often end up hiring armies of people to sit around having meetings instead of focusing on sustainable growth.“
?- Paul Graham, Partner & Co-Founder,?Y Combinator
Some say it’s the best way to grow. Others see it as a tough road with limits. Do you think it’s a smart move?
Tight liquidity: why bootstrapping makes sense for Deep Tech
Venture capital is stabilizing after a rollercoaster few years. Although, global VC investments totaled $368.5B in 2024, which is below the peak of the previous years. Deep tech funding has followed a similar trend. Global deep tech investments reached $105B in 2024 according to BCG but despite the decline (5% from the year before), deep tech now makes up 44% of all tech investments in Europe.?
As we can see from the graph, capital investment is not stable. But the good thing is, it isn’t the only path to success. Bootstrapping forces efficiency-you use fewer resources and create more opportunities. Deep tech startups should focus on early revenue, product-market fit, and strategic partnerships. This approach allows companies to grow sustainably without relying on external capital cycle.
A bootstrapping recipe
Bootstrapping is a mindset for your startup, not just the funding choice. Without investor cash, founders must be strategic, disciplined, and resourceful to grow efficiently. Like in cooking, here are three key ingredients:
Want to learn more?
Bootstrapping requires smart strategies for sales, product development, and customer acquisition. Check out our Startup Guide, where we break down pros and cons of bootstrapping, key tactics, real-world deep tech bootstrapping examples like Axion BioSystems, Span, and CytoVale, and expert insights to help you scale without VC funding.
Spotlight: M-Star Simulations, from bootstrapping to exit
When M-Star was founded in 2016, John Thomas launched it without outside funding, growing it into a unique GPU-native CFD company. A year ago, Dotmatics acquired the business, now used by top pharma, biotech, and F&B companies worldwide.
From the beginning M-Star focused on real-world applications. John Thomas prioritized customer needs and developed high-performance GPU-accelerated CFD simulations that outperformed traditional methods. This way the company secured major clients long before any outside funding came in, they focused on building strong industry relationships with the help of Sparksense.
领英推荐
Lesson from our client for deep tech founders: strong technology, a clear customer focus, and early revenue can drive growth—without giving up ownership.?
Want to learn how to do the same? Join Sparksense’s live Sales Talk on February 12th at 5pm CET, where John Thomas (Founder of M-Star) and Hervé Flutto (Founder of Sparksense) will share firsthand insights on:
Register for the webinar on our LinkedIn.
Make every dollar count with Brex
Without the cushion of VC funding, financial discipline is key. That’s where Brex can help you.?
How can Brex help bootstrapped founders?
For bootstrapped startups, financial discipline is important for survival. Brex helps you stay lean, move fast, and keep full control of your finances.?
Tap into hidden market opportunities in … Data Center Infrastructure
Are you feeling like you're not getting the traction you need to grow your business? Or maybe you are having trouble competing with larger competitors? That’s why we work with entrepreneurs to find hidden market opportunities or second tier players who offer untapped potential.
Company: Vertiv?
Founded: 1965
Employees: 27000
Global reach: 130+ countries
Vertiv is a global leader in critical digital infrastructure solutions that ensures data centers, communication networks, and industrial facilities run without downtime with 750,000+ customer sites worldwide.
Relevant technologies & growth areas: power and cooling solutions, edge computing infrastructure, AI-optimized power management, data center automation and monitoring.?
Do you want to have access to more decision makers? Let’s work together to identify the Hidden Champions that need YOUR STARTUP’s solution.
Want to know more about Sparksense? Discover our services and packages here. Additionally, we offer free valuable insights and strategies to boost your entrepreneurial journey. Download our comprehensive Business Development Guide ebook. Let’s talk to find out how we can help take your sales to the next level. Book a call with me today!
Thank you for reading! If you have any questions please feel free to email me directly.
Sincerely,
Hervé Flutto,
Managing Director and Founder, Sparksense