Bootstrapped Startups are not Anti VC

In a world dominated by venture capital-funded startups, the term “bootstrapping” has emerged as somewhat of a counterculture movement. It’s often wrongly perceived as being anti-VC. Bootstrapping is about carving a different path to entrepreneurship, one that emphasizes independence and lifestyle over rapid growth and external investors. It’s a choice that aligns with a set of unconventional ideas, allowing entrepreneurs to live life on their own terms. Here are nine unconventional ideas that many bootstrapped startups live by, which should not be mistaken for being anti-VC.

1. Make Your Own Schedule

The freedom to be able to set your own schedule is one of the biggest positives of bootstrapping a startup. Bootstrapped founders can usually set the pace that they deem fit and most suitable, unlike that of a Venture Capital funded startup or the traditional 9-to-5 grind. Bootstrapped founders have comparatively more freedom and are not under pressure to ‘show their work’ to anyone. They can run errands and even take time off when they feel like it before getting back on track without any external pressure. There is a lot of flexibility that allows bootstrapped founders to achieve a greater work-life balance and prioritize their well-being.

2. Life Partner as Cofounder

A good percentage of bootstrapped founders have co-founded their startups with their life partners. In other words, they have their life partner as their business partner. These co-founder duos travel together, they work while traveling and embrace a lifestyle that is typically more fun than the typical startup ‘grind’ and ‘hustle culture’. These types of dupes tend to be happier. They don’t even need to justify to anyone how they spend their time, least of all to a board of directors because they are meeting the targets that they themselves have set, at the pace they deem most fit and are having fun doing it.

3. Freedom for the Team

Very often, bootstrapped founders extend to their team the very same freedom and lifestyle that they themselves enjoy. They sometimes employ contractors who can also set their own working hours, times, and locations. It is also similar to the employees. There is an inherent trust in the startup’s team with a belief foundation that giving autonomy leads to far greater productivity and employee satisfaction levels. The employees are not bound to certain locations or working hours and do not have to be held to the requirements of venture capitalists.

4. Lifestyle Over Revenue

Instead of chasing revenue, growth, and higher valuation at all costs, bootstrapped founders focus on optimizing their lifestyle and happiness (take the Kamath brothers, as a prime example). Let aside aggressive sales calls that use manipulative techniques and certain unethical anti-competitive practices, bootstrapped founders even skip networking events if it gets extremely hectic and affects their lifestyle. Their overall emphasis is on the well-being of their team and themselves, not just money in the bank.

5. Grow Slowly

Unlike venture-backed startups that may feel pressured to manufacture growth to appease investors, bootstrapped businesses can take their time to build a product customers genuinely love. They prioritize feedback and sustainable growth over rapid expansion.

6. Be Brutally Honest

Founders running bootstrapped startups have the rare freedom to be brutally honest without damaging their carefully crafted public image essential to raise further funds for their startup from Venture Capital investors. Bootstrapped founders can openly admit when things aren’t going perfectly in their startup and give their honest take on things. There is absolutely no requirement for the “I’m killing it” facade.

7. Make Major Decisions Without Approval

Bootstrapped founders have greater autonomy in certain crucial decision-making without the need to get approvals from their Board of Directors. This autonomy extends to hiring, firing, budgeting, compensation, investments, and strategic decisions since the founder is often the sole decision-maker in such startups. This blesses the startup with the ability to quickly adapt to changing situations and be agile.

8. Raise Capital from Anyone, Later

It is not untrue that bootstrapped startups raise zero capital. Just because a company has been bootstrapped thus far does not decree that it will forever remain this way. There are many bootstrapped founders who first aim to have significant revenue and strong financials before they go out to raise money from investors. This is their way of getting better terms from investors and still not compromising their independence.

9. Sell the Company When You Want

One of the biggest plus points of a bootstrapped startup is the ability to sell it on your own terms. Founders running bootstrapped startups are not under the immense pressure that founders of VC-funded startups are to give certain returns to their investors. This gives bootstrapped founders the liberty to decide when, how, and to whom to sell their business, ensuring that they themselves reap the rewards of their hard work on their own terms.

Bootstrapping is not necessarily an opposition to venture capital. It’s a conscious lifestyle choice made by entrepreneurs who value independence, happiness, and freedom. It allows them to create businesses that align with their vision of a fulfilling life. For them, the decision to bootstrap is not just financial but also deeply personal. They ask themselves, “What kind of life would I want to live if I were to build this company for the next 10 years?” The answer often leads them down the bootstrapping path, which should not be misconstrued as anti-VC but as an alternative way of doing business.