The debate is often argued as a matter of identity. It is better treated as a question about the particular business.
Raising tends to fit when:
- The market rewards whoever gets big first.
- The product needs a lot of money before it can earn any.
- You want to build a very large company and accept that most attempts fail.
- You are comfortable with a board, with reporting, and with an eventual sale or listing as the goal.
Bootstrapping tends to fit when:
- The product can earn money early.
- The market is a niche that a small team can serve well.
- You want control over pace, direction and whether you ever sell.
- A business that pays you well and stays small would count as success.
Questions to ask yourself
- What would you do with the money in the first six months, specifically?
- Could you reach revenue without it?
- What do you want your working life to look like in five years?
- How do you feel about answering to investors?
- If the company grew slowly and steadily, would that be a good outcome or a failure?
Reply with which you chose, what drove it, and whether you would choose the same again.