The journey never ends: Post venture capital business building
After nine years, we still feel like we’re just getting started. Bootstrapping laid the foundation to a sustainable business that can grow for years. Also, bringing on capital 7-years into our growth story allowed us to retain greater control over the company we built.
While bootstrapping may not allow you to grow as fast, you’ll create a solid foundation from which to grow and can be more aggressive later.
Bottom line: If you want to ask for venture capital money, bootstrap first. There are many lessons along the way.
If you’ve built a profitable business and you’re looking to scale up, venture capital may be right. However, it only makes sense if you truly believe venture capital is the one thing holding you back. Be prepared with a proven business model if you go down this road. Also, make sure you have an excellent story to tell investors. This will not only generate interest, it puts you in the best position to negotiate a deal.
One key benefit of waiting to raise capital is the ability to retain a majority of the company. When you’ve been successful at building your company, your investors want you to run the company because they’ve bought into your vision.
Alyssa Furtado is a passionate entrepreneur, financial expert, digital marketer and educator. She is the co-founder of Ratehub Inc. and CEO of Ratehub.ca, the leading Canadian financial comparison site for mortgage rates, credit cards, deposit rates and insurance.