What are the differences between bootstrapping and venture capital?

What are the differences between bootstrapping and venture capital?

Bootstrapping involves funding your business using personal savings or revenue, while venture capital is external funding from investors.

What are the advantages of bootstrapping?

Bootstrapping allows for full control over your business, no debt, and you retain all profits.

And what about the advantages of venture capital?

Venture capital provides significant funding, access to a network of advisors, and can accelerate growth.

Which option is better for a tech startup?

It depends on your goals. If you want rapid growth and can handle the pressure, venture capital might be better. If you prefer control and sustainability, bootstrapping could be the way.

Can you give examples of successful companies that used each method?

Sure! Companies like Mailchimp bootstrapped their way to success, while Uber is a well-known example of a venture-backed startup.