The Startup Velocity Question - Venture Funding of Bootstrapped Startups

I publish this series to discuss the nuances of bootstrapped entrepreneurship. Please subscribe to my Best of Bootstrapping series to never miss an article.

As you know, I categorically support bootstrapped entrepreneurs.

There are numerous startups now that have achieved $4M-$5M in revenue without any external funding.

However, it has taken time. Sometimes, it has taken 5-7 years to get there.

VCs, however, are looking for velocity.

Their goal is to achieve $100M in 5-7 years.

So how does an entrepreneur with a $4-$5M bootstrapped company convince investors that (s)he can get to $100M in the next 4-5 years?

How is that a credible, defensible claim?

This question is at the heart of the Bootstrap First, Raise Money Later strategy that we practice and advocate in 1Mby1M.

The key to this is in establishing a clear positioning and GTM strategy with precise metrics.

If your positioning can show a defensible bottom-up TAM, and if your GTM validates a repeatable customer acquisition strategy that can be scaled aggressively by injecting capital, you CAN raise money.

If your startup is facing Positioning challenges and you need help, you can explore?Velocity Consulting?with me.

You can read the entire series, The Startup Velocity Question, here.

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