Should You Seek Funding, or Bootstrap?

hould you go for funding or should you bootstrap?

The answer depends on your intention with your startup. There are three intentions an entrepreneur could have:

1. From the beginning, the entrepreneur intended to sell off the startup. These entrepreneurs would seek funding to pay salaries, overheads and project expenses. When the time comes, i.e. when the startup is profitable or shows promise, the entrepreneur and the funders will sell it.

2. The entrepreneur intends to grow with the startup, but doesn't mind not having a controlling stake. The entrepreneur would give up his stake for funding. Later, even after the funders have sold off their share of the business, the entrepreneur remains as the business' CEO or at least as a director.

3. The entrepreneur wants at least 51% control of the startup. He may seek capital but will not give up control.

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It would be easy to see that Venture Capitalists (VCs) and other investors would be most interested in the first type and least interested in the last type. After all, the investors would want to maximise their share in the company and then sell off. If you are willing to give up control, you can seek VC funding.

I founded Mansa to have control over it. If your intention with your startup is like mine, then bootstrapping is our only option. I am aware that I may require external funding soon. I will look at my options again then.