Make Money by Starting a Business | Should You Bootstrap or Raise Capital?

Sep 30, 2025

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Travis and producer Eric break down one of the most polarizing topics in entrepreneurship: is it better to bootstrap a business, or raise outside capital? Drawing on personal experience and lessons from startup culture, Travis reveals the biggest mistakes founders make when chasing VC funding, why Silicon Valley’s obsession with investment misleads so many, and the first principles everyone should use to decide how to launch any new company.

On this episode we talk about:

The dangers and downsides of raising funding too early—even if the “checklist” seems to fit your business
Why bootstrapping builds discipline, pressure, and actual proof of concept (and how to get creative when money is tight)
When venture capital makes sense—and all the hidden costs of taking outside money, from loss of control to preferential contracts
How AI is changing the software startup equation, and shrinking the need to raise massive amounts of funding
Lessons learned from infamous failures (like Quibi) and the right ways to audit your business before chasing investment

Top 3 Takeaways

1. Bootstrapping is almost always the better first move; it boosts discipline, real market feedback, and keeps control in the founder’s hands.
2. Raising outside capital adds pressure, complex contracts, and doesn’t guarantee success; cash alone never fixes a business that lacks product-market fit.
3. Use trusted frameworks (like Reid Hoffman’s Blitzscaling checklist), consult experienced founders, and remember: don’t give away control unless it’s truly required for growth.

Notable Quotes

“If at all possible, bootstrap first—even just to prove your concept. Outside money makes everything more complicated.”
“Cash doesn’t solve all your problems. There are usually bigger issues at play—product, marketing, market fit—that have nothing to do with funding volume.”
“The moment you take other people’s money, it gets harder, not easier; discipline and focus will always win.”

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