One of the most thought-provoking sessions at this year’s Web Summit Vancouver Masterclass series tackled a question every founder eventually faces: Should you bootstrap your startup or raise venture capital?
In the session titled “Bootstrapping or Venture Capital,” Ricky Tejapaibul, Managing Partner and CEO at Tech Wildcatters, broke down the decision-making process with a clear, no-nonsense framework. His insights helped founders weigh the pros and cons of each path — and understand that the choice isn’t always black and white.
Bootstrapping: The Founder-First Approach
Bootstrapping means building your business with your own resources — and it comes with distinct advantages:
- Full control: You retain 100% ownership and decision-making power.
- Financial discipline: Every dollar counts, encouraging lean, focused growth.
- Freedom to build sustainably: Without investor pressure, you can grow at your own pace.
The tradeoff? Limited capital can slow down scaling and make it harder to compete in fast-moving markets.
Venture Capital: Fuel for Rapid Growth
On the flip side, venture capital offers a powerful growth engine:
- Faster execution: Funding accelerates product development, hiring, and market entry.
- Credibility and connections: Backing from VCs can open doors to partnerships and talent.
- But… it comes with strings: equity dilution, board oversight, and pressure for quick returns.
It Doesn’t Have to Be Either/Or
Ricky emphasized that funding isn’t a binary decision. Many successful founders blend both paths — starting lean, then raising capital strategically.
He shared case studies of startups that bootstrapped early, raised selectively, and still maintained strong ownership and long-term control.
Key Questions Every Founder Should Ask
Before choosing a path, Ricky encouraged founders to reflect on:
- What’s your risk tolerance?
- Are you optimizing for speed or sustainability?
- Can you commit time to fundraising without losing focus on building?
- Do your potential investors align with your values and vision?
Beyond VC: Exploring Alternative Funding
Not every startup needs venture capital. Ricky highlighted several alternatives:
- Angel investors
- Accelerators and incubators
- Customer-funded growth
- Government grants and R&D credits — especially abundant in Canada
These options can provide capital without giving up equity — a major win for early-stage founders.
Final Thought: Build on Your Terms
Ricky closed with a powerful reminder: Don’t let the allure of fast money distract you from your mission. Whether you bootstrap, raise, or do both — make sure your funding strategy aligns with your values, your goals, and your long-term vision.
