A founder compares his bootstrapped exits to his VC-backed ones and finds the bootstrapped deals paid him more cash, even with lower valuations. VC deals get eaten by liquidation preferences and investor payouts. Bootstrapped means you keep all the equity.
Venture-backed versus bootstrap. Bootstrap, you need a smaller exit to make a life-changing amount. That's what matters in acquisition. It's not the actual number. It's, is it a life-changing number for you? And I think that's way more possible with bootstrap than venture-backed. I have made more on my bootstrap exits. Like any single one of my bootstrap exits has made more than probably all of my venture-backed exits in terms of what went into my pocket, right? The actual numbers, sure, they're higher. Sometimes investors get their money back plus more. You know, there's liquidation preferences. And then after everything is said and done, then usually the founders get paid out. And sometimes after you do that for 2, 3 years, it feels like you kind I just had a job and you get to call more shots than any normal job. But with bootstrap exits, while you do take all the risks, all the outcome is yours.
The Buyers Who Made the Move: What They Bought, How They Did It, and What Happened Next
