27min chapter

Jason Fried challenges your thinking on fundraising, goals, growth, and more

Lenny's Podcast: Product | Growth | Career

notes

CHAPTER

Bootstrapping vs Venture Capital

The speaker advocates for bootstrapping instead of raising venture capital, explaining that certain businesses like car manufacturing or restaurants require capital while software businesses can be started with just a few laptops and people. They caution that venture-backed companies are often expected to become massive unicorns, eliminating the opportunity for smaller, more sustainable businesses to thrive.

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Transcript

Episode notes

Jason Fried is the co-founder and CEO of 37signals, the maker of Basecamp and HEY. 37signals is a very different kind of company. With fewer than 80 employees, they have over 100,000 customers, generate tens of millions of dollars in profit each year, and have no investors, board, or any plans to ever raise money or sell the company. In our conversation, we explore a path many tech founders never consider—bootstrapping. We discuss:

• Why he and his team prioritize profit above all else

• The unexpected challenges with raising venture capital

• The “Shape Up” framework for building products

• Why, and how, to foster a gut-driven culture

• Jason’s thoughts on why work should not feel like war

• Advice for starting a bootstrapped business

• The philosophy behind Once, 37signals’s new line of software products

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Find the full transcript at: https://www.lennysnewsletter.com/p/jason-fried-challenges-your-thinking

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Where to find Jason Fried:

• X: https://twitter.com/jasonfried

• LinkedIn: https://www.linkedin.com/in/jason-fried/

• Email: jason@hey.com

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Where to find Lenny:

• Newsletter: https://www.lennysnewsletter.com

• X: https://twitter.com/lennysan

• LinkedIn: https://www.linkedin.com/in/lennyrachitsky/