Whether to boostrap or raise VC for SaaS businesses?

Posted by abhilashcho on Thursday February 08, 2024 @03:28PM
from the self-post dept.

I was looking at few of the growing bootstrapped SaaS businesses and saw that some of them are growing about 30% YoY and profitable.

Given that AI is making builders more productive, for building a SaaS, is VC funding even required?

( 5 comments | 3 points | on HN )

Re:Whether to boostrap or raise VC for SaaS businesses? by loondri on Thursday February 08, 2024 @03:34PM (#39307314)

I would say with work from home and AI helping you build stuff quickly, bootstrapping is a great way to validate the market needs and reach to 10k MRR

I did the same with my bootstrapped data intelligence startup

[ Parent | on HN ]

Re:Whether to boostrap or raise VC for SaaS businesses? by abhilashcho on Thursday February 08, 2024 @03:49PM (#39307500)

Interesting. Mind sharing more about what your startup does?

[ Parent | on HN ]

Re:Whether to boostrap or raise VC for SaaS businesses? by datanerd_69 on Thursday February 08, 2024 @03:46PM (#39307464)

Honestly, I think it depends on your company's financials. If you have a healthy ARR topline and have been profitable with solid margins, practically there ain't any reason to source funding. But then its a also a question about how fast you wanna grow your company - whether you're happy with gradual and steady growth or want to desperately blitzscale!

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Re:Whether to boostrap or raise VC for SaaS businesses? by abhilashcho on Thursday February 08, 2024 @03:49PM (#39307491)

But I think the main problem is can you cold start without VC? I've a side project and I'm trying to figure out whether to spend time meeting VC and raise funds or just execute + build product.

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Re:Whether to boostrap or raise VC for SaaS businesses? by bhag2066 on Friday February 09, 2024 @05:57AM (#39313574)

If I were doing it I'd set out to do everything in my power to bootstrap and own 100% of the company. I think that's the easiest it's ever been for the reasons you say and because of cheap cloud resource. I'd use VC as a last resort or if I genuinely needed to accelerate development or growth for competitive reasons.

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