BCW #24: Bootstrap or Bust - Is VC Money Overrated in 2025?
Why some founders are saying no to venture capital.
Hey Builders,
In 2025, the startup world is at a crossroads. The allure of venture capital (VC) funding -big checks, flashy pitch decks, and unicorn dreams -still dazzles. But a quieter revolution is brewing: bootstrapping. Founders are increasingly asking, “Do I really need VC money to scale?” Let’s dive into some of the pros, cons, and real-world stories of bootstrapping versus VC funding, and I’ll share a decision tree that can help you choose your path. Plus, a friend’s story that might hit close to home.
From The Desk: Bootstrapping - Freedom, Grit, and Control
Bootstrapping is like building a house with your own hands. You use your savings, revenue, or side-hustle cash to grow your startup without external investors. It’s lean, scrappy, and empowering.
Pros
Full Control: No boardroom battles or diluted equity. You call the shots.
Customer-driven growth: You’re forced to focus on real revenue, not investor hype.
Resilience: Bootstrapped companies often weather economic storms better.
Cons:
Slower growth: Limited cash means you might scale slower than VC-backed competitors.
Resource constraints: Hiring top talent or investing in marketing can be tough.
Personal risk: Your savings (and sanity) are on the line.
Take MailChimp, the email marketing giant. Bootstrapped for 20 years, they hit $700M in revenue before selling to Intuit for $12B in 2021. No VC, no problem. They prioritized profitability over flashy growth, proving you don’t need a war chest to win.
VC Funding: Rocket Fuel or Ticking Time Bomb?
VC funding is like strapping a jetpack to your startup -exhilarating but risky. Investors pour millions, expecting hockey-stick growth and a big exit.
Pros
Fast scaling: Cash for hiring, marketing, and tech that lets you sprints.
Network access: VCs open doors to partnerships and talent.
Credibility: A big-name investor can boost your brand.
Cons
Loss of control: Investors want seats at the table -and a say in your vision.
Pressure to exit: VCs need returns, often pushing for acquisitions or IPOs.
Burnout risk: The “grow fast or die” mentality can crush founders.
Look at WeWork. They raised $22B in VC funding, hit a $47B valuation, and then imploded under mismanagement and unrealistic growth targets. The lesson? Money doesn’t guarantee success -it can amplify mistakes.
The Decision Tree: Bootstrap or VC?
Here’s a simple framework to decide:
What’s your vision?
Want to build a lifestyle business or niche product? Bootstrap.
Aiming for a moonshot (e.g., AI, biotech)? Consider VC
Can you generate revenue early?
If your product can sell fast (e.g SaaS, e-commerce), bootstrap to prove traction.
If you need heavy R&D or infrastructure, VC might be necessary.
How much control do you want?
Hate answering to others? Bootstrap.
Okay with shared decision-making for faster growth? VC.
What’s your risk tolerance?
Comfortable betting your savings? Bootstrap.
Need a safety net and resources? VC.
A Friend’s Story: His Bootstrap Leap
Five years ago, he launched a small content platform with $2,000+ from his savings. No investors, no safety net. Late nights coding, cold emailing clients, and eating instant noodles were his reality. But every dollar he earned felt like a victory. When a VC offered funding, he hesitated. Their terms meant giving up 30% of his company and pivoting to a model he didn’t believe in, he said no. Today, that platform’s modest but profitable -and his. Bootstrapping has taught him resilience, because he admitted there were moments he envied VC-baked founders with their shiny offices and big teams. The grass is always greener, right?
The Relatable Angle: Freedom vs. Speed
In 2025, bootstrapping is a rebellion against the VC-fueled “unicorn or bust” culture. It’s for founders who want to build on their terms, even if it’s slower. VC funding, meanwhile, is for those ready to trade equity for speed and scale. Both paths can work -but only if they align with your vision.
Think of Basecamp, thriving for decades without a dime of VC, versus Uber, which burned billions to dominate but still faces profitability struggles. The real question is: What’s success to you?
Let’s Talk: Founders, have you bootstrapped or taken VC? Investors, what makes you back a startup? Share your stories in the comments -I’d love to read them.
“Bootstrapping is a rebellion against the unicorn or bust culture. Build on your terms, even if it’s slower”.
Tweet this quote and tell us: Are you team bootstrap or VC?
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Opportunities This Week
Food Court is looking for a Marketing Coordinator. Apply here.
FairMoney is recruiting Head of Business Banking Product. Apply here.
Flutterwave is hiring for several roles. Apply here.
Paga is recruiting for several positions. Apply here.
Moniepoint is hiring for several positions. Apply here.
GET Accelerated Program 2025. Apply HERE
Africa Ecosystem Catalysts Facility. Apply here
Kuya Grant (Q4 2025). Apply here
TheFutureCo Accelerator (Cohort 13). Apply here
No-code Tool Of The Week
OutSystems is a no-code/low-code platform designed for building scalable web and mobile applications quickly, making it ideal for founders who need robust, enterprise-grade apps without extensive coding. OutSystems offers a powerful solution for creating complex applications, such as CRMs or internal tools, with minimal technical expertise.
Fast Insights
There is no wealth without work! Entrepreneurship means folding up your sleeves and working. Profit is the reward.
James Mwangi, CEO, Equity Bank (Kenya)
Links We Love
Must-Watch: “Him” is a raw look at rising through adversity -essential for founders building diverse teams in Africa. It follows a young Black athlete (Tyriq Withers) navigating mentorship and identity under Marlon Wayans and Julia Fox. It resonates with Nigerian founders mentoring talent in diverse ecosystems, highlighting growth through tough guidance. Available on Amazon Prime.
Podcast: “Dissect” turns albums into masterclasses on narrative -timely inspo for founders crafting compelling brand stories. Layered stories reveal universal truths -apply it to user journeys in product design. Listen on Spotify or Apple Podcasts
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Till next week, Keep Building!
Chioma Judith
Writer/Curator of Builders