Founder's Journal A primer on seedstrapping
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Apr 28, 2025 Dive into the evolving world of seedstrapping, where startups focus on profitability from a single seed round. Discover why this approach is gaining popularity and how it contrasts with traditional funding methods. Hear insights on how generative AI can boost efficiency for smaller teams. Personal success stories, including lessons from Morning Brew and Zapier, highlight the contemporary startup landscape. Explore the balance between control, funding, and ambitious goals as experts weigh in on the viability of this innovative strategy.
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Zapier's Seedstrapping Success
- Zapier raised only about $1.3 million from YC and one other venture fund and never raised again.
- Today, it's a multi-billion dollar company demonstrating seedstrapping success.
Why Seedstrapping Is Trending
- Post-COVID and high-interest-rate market reset challenged startups to reach profitability sooner.
- Generative AI enables lean, highly efficient companies with tiny teams and less capital.
Seedstrapping: The Goldilocks Approach
- Raise one seed round to gain validation, mentorship, and a supportive network with minimal dilution.
- Use the funding to reach profitability and build a sustainable business before considering further raises.