This Week in Startups Bootstrapping vs. taking Venture Capital (FounderU) + Ask An Angel with Zach Coelius | E1260
Aug 5, 2021
Zach Coelius, an experienced angel investor, joins Jason Calacanis to dissect the critical decision between bootstrapping and venture capital. They explore the nuances of 'pegasus' companies, which attract substantial VC backing, and discuss when bootstrapping is the preferable route. They'll also shed light on the motivations behind venture investors and the necessary strategies for building a solid minimum viable product. Finally, Zach tackles listener questions, sharing insights into the realities of entrepreneurship and honest investor-founder relationships.
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Bootstrapping for Less Dilution
- Bootstrap companies can achieve less dilution by delaying funding rounds.
- Build a strong foundation with sweat equity or initial revenue.
Pegasus Companies and Ownership
- Bootstrapping longer leads to less dilution and higher ownership.
- "Pegasus" companies skip funding rounds, maximizing founder and early investor ownership.
Focus on Building, Not Networking
- Focus on building a strong team, product, and customer base before seeking funding.
- These demonstrable achievements are more persuasive than a business plan or networking.