The Allure of Raising Millions
Posted: Sun Feb 02, 2025 4:23 am
What Funding Options Do You Have as a SaaS Founder?
These days, there are more funding options than ever: seed investors, angel investors, an incubator, or a VC firm. You could also take on debt, max out all your credit cards, or if you’re really patient, just wait for an invitation to Shark Tank. (You might be waiting a while.)
There's no one-size-fits-all approach that works for every company, but in my experience in SaaS and B2B, there’s very rarely a reason or need to raise millions right away and invest in a ton of things before you even go to market and validate demand. Instead, you might want to consider the option I took with Close: bootstrapping.
What is bootstrapping exactly? It refers to growing your qatar telegram data business by the strength of its revenue and profits and not taking outside investor money to grow the company. People also refer to this as self-funding a startup—maybe to sound cooler and less like a grandpa—but whatever you call the practice, it means no investors are involved.
For this option, you have to create an early, lightweight version of your product that people are willing to pay for, allowing you to fund your business with the revenue from your initial sales. It’s a very practical source of funding a business, even though it might not seem as sexy as venture capital.
Few startup founders can resist the allure of raising a huge sum of money from a brand name investor. For five years, I tried to raise money for my first startup and only managed to cobble together a measly $50,000. I’ve made my peace with the fact that I am the world’s worst fundraiser.
These days, there are more funding options than ever: seed investors, angel investors, an incubator, or a VC firm. You could also take on debt, max out all your credit cards, or if you’re really patient, just wait for an invitation to Shark Tank. (You might be waiting a while.)
There's no one-size-fits-all approach that works for every company, but in my experience in SaaS and B2B, there’s very rarely a reason or need to raise millions right away and invest in a ton of things before you even go to market and validate demand. Instead, you might want to consider the option I took with Close: bootstrapping.
What is bootstrapping exactly? It refers to growing your qatar telegram data business by the strength of its revenue and profits and not taking outside investor money to grow the company. People also refer to this as self-funding a startup—maybe to sound cooler and less like a grandpa—but whatever you call the practice, it means no investors are involved.
For this option, you have to create an early, lightweight version of your product that people are willing to pay for, allowing you to fund your business with the revenue from your initial sales. It’s a very practical source of funding a business, even though it might not seem as sexy as venture capital.
Few startup founders can resist the allure of raising a huge sum of money from a brand name investor. For five years, I tried to raise money for my first startup and only managed to cobble together a measly $50,000. I’ve made my peace with the fact that I am the world’s worst fundraiser.