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The problem with bootstrapped businesses is scale. It can be very difficult to do big things like produce a LOT of high-quality original content and start an awesome family-themed DIY fair in the Bay area without money....

On the other side, one of the best bootstrapped DIY events is Defcon. I still remember when they didn't have air conditioning. I know it's not the same and it's not kids friendly- probably why it has succeeded.

My original point is, sometimes you just need to go big, so there is an opportunity to accomplish more. For an entrepreneur, failure is not always the biggest fear; Accomplishing too little can be a much bigger regret.


Subtly, bay area costs are preferred to prices paid by VC backed companies. I built a bootstrapped logistics company in SFBA, and it was brutal. Frankly, we only succeeded/survived because of a single giant deal that involved software and not logistics, i.e. 95+% margin.


What stops a bootstrapped business raising money that doesn't stop a non-bootstrapped business? Is it one of those Silicon Valley "perfect play" things?


Once you take money you have investors. Investors want a return on their money... so now you're a VC backed company.


Bootstrapped is orthogonal to taking money though.



What does bootstrapped mean? I thought it meant self-funded


I thought it meant "got from concept to ramen profitability" but I could be misusing the term so please let me know if I am. :)


It means "got from concept to ramen profitability on your own money" :).


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