Bootstrapping Your Startup vs. Getting Investors: Which Path Is Right for Your Business?

Should I be bootstrapping my startup or seek investors? If you’re starting a business, you’ll face this question probably at some point.

The short answer? It depends. The longer answer? It depends on your goals, your tolerance for risk, and how much control you’re willing to give up.

I’ve worked with both types of entrepreneurs—those who hustle to build their dream business on their own terms and those who pitch to VCs in Silicon Valley for millions of dollars. While the paths may look very different, here’s a little secret: The process in the early stages is—or should at least be— actually the same. Whether you’re bootstrapping your startup or aiming for big funding, your first priority should always be the same: validate your idea, gain traction, and learn fast.

Let’s break it down—pros, cons, real-life examples, and what I’ve learned from founders on both sides of the spectrum.

The Case for Bootstrapping Your Startup

Bootstrapping means building your business with your own resources—your savings, your revenue, and maybe some support from family and friends. It’s scrappy, lean, and forces you to focus on what really matters.

The Pros of A Bootstrapping Startup:

Control: You’re the boss. No investors telling you what to do or chasing profit margins that don’t align with your values.
Flexibility: You can pivot quickly without needing approval from a board or shareholders.
Creative Problem-Solving: Limited resources push you to think outside the box.
Ownership: You keep 100% of your company, which means you reap all the rewards.
Sustainability: Bootstrapped startups often focus on profitability early, which makes them more sustainable in the long run.

The Cons of A Bootstrapping Startup:

Limited Resources: Growth can be slower because you don’t have a huge cash injection.
Personal Risk: Your savings are on the line, which can be stressful.
Scaling Challenges: It may take longer to hire a team or expand your offerings.

The Case for Getting Investors

Raising money from investors—whether it’s angel investors, venture capitalists, or others—gives you a significant cash boost to grow your business quickly. But it comes with strings attached.

The Pros of Raising Money:

Speed: With more funding, you can scale faster and seize opportunities.
Access to Expertise: Many investors bring valuable connections and advice to the table.
Big Bets: If you’re in a market where being first matters, funding can give you a competitive edge.
Shared Risk: You’re not shouldering the financial burden alone.

The Cons of Raising Money:

Loss of Control: Investors usually want a say in how the business is run—and a piece of the pie.
High Expectations: Once you take money, the pressure to deliver (often quickly) can be intense.
Exit-Driven: Investors are typically looking for a big exit, like a sale or IPO, which may not align with your vision.
Longer Commitment: With investors on board, you can’t easily walk away or pivot radically without buy-in.

What Kind of Business Are You Building?

The decision often comes down to what type of business you’re trying to create.

A Lifestyle Business

If your goal is to build a sustainable business that allows you to live life on your terms—whether that’s working remotely, spending more time with family, or focusing on a passion project—bootstrapping your startup is often the way to go.

A Scalable Startup

If your goal is to create the next big tech platform, dominate a fast-growing market, or aim for a billion-dollar valuation, raising money might be necessary to move at the speed investors expect.

Reality Check:
The chances of becoming the next unicorn are slim. According to CB Insights, less than 1% of startups achieve a $1 billion valuation. If that’s your dream, go for it—but know what you’re signing up for.

What I’ve Learned from Founders on Both Paths

I’ve worked with solopreneurs building small, intentional businesses and with founders pitching in Silicon Valley. Here are my thoughts: Many of those big-shot founders come back to me when they start their second venture, and this time, they’re bootstrapping their startup. Why?

Because they’ve experienced the downside of raising money: the pressure, the loss of control, the burnout. With their second business, they want freedom.

Case in Point:
One client, a founder of a tech startup, raised $1.5 million in their first venture. It scaled quickly, but the demands of investors turned the business into something they no longer loved. When they exited, they took that experience and started their next company on a shoestring budget. “I want to do it my way this time,” they told me. That second venture is profitable, sustainable, and they’ve never been happier to have time to spend with their family and kids.

On the flip side, I’ve worked with bootstrapped startups who later decided to raise money—not because they had to, but because they were ready to scale. The foundation they’d built through bootstrapping gave them leverage when pitching investors.

Case in Point:
A solopreneur running a subscription box service bootstrapped her business for two years, focusing on profitability and customer loyalty. When she decided to scale nationally, she raised $250K in seed funding. The investors were eager to back her because she already had traction and proof that her model worked.

My Personal Take

When I started my business, I knew I wanted freedom above all else—freedom to travel, to experiment, to pivot, and to make decisions that felt right to me. Bootstrapping and keeping it all lean and easy was the natural choice.

I didn’t want to answer to investors or feel like I had to scale at someone else’s pace. I wanted to build something lean and sustainable, and honestly, I wanted to learn along the way without the pressure of someone breathing down my neck.

That’s not to say bootstrapping is easy. I’ve had to get scrappy, be patient, and grow slower than I sometimes wanted. But for me, the trade-offs are worth it.

How to Decide Whether A Bootstrapping Startup or Raising Money is Right for You

If you’re torn between bootstrapping your startup and raising money, ask yourself:

What’s my ultimate goal? Am I building a lifestyle business or aiming for a big exit?
How much control do I want to keep? Am I okay with answering to investors?
Am I comfortable with risk? Can I handle the personal financial commitment of bootstrapping?
What’s my timeline? Do I need to scale quickly, or can I grow at a steady pace?

Final Thoughts: Start Lean, Then Decide

Whether you plan to bootstrap your startup or raise money, the early steps are the same: validate your idea, gain traction, and prove that people are willing to pay for what you’re offering. Start small, stay focused, and learn fast.

Once you have proof of concept, you’ll be in a much better position to decide whether to keep bootstrapping or bring investors on board.

Ready to take the first step? Join my next Expedition Solopreneur Cohort to build a lean, focused plan to validate your idea and set your business up for success—on your terms.