Do you believe securing funding is a necessity for scaling a SaaS business?
Subin Babu
14 replies
In my opinion, it doesn't matter much; there are numerous examples of successful companies that thrived without any funding, such as Zoho, Mojang, MailChimp, Atlassian, and many more.
Replies
André J@sentry_co
FlowLayout
It just takes longer. so why do it?
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@sentry_co Yeah, that's what I'm asking. In my opinion, there is no need to take funding to grow. It's my personal opinion.
FlowLayout
@realsubinbabu well, then you will grow slower, and another team might take your market share. Startup is ultra competitive and global. But each case is different. If you can get a good valuation, then its a no brainer to take funding.
@sentry_co Indeed, it depends. There are many examples, as I've mentioned in the description, of companies that have grown without any funding. So, it's not always true that without funding, someone won't be able to grow. It's not true in every case.
"It depends on the stage of your business and your goals." This answer acknowledges that there is no one-size-fits-all answer to the question, and the best approach will vary depending on the specific circumstances.
"I'm excited about the potential of a partnership, but I'm also nervous about the risks. How do I mitigate those risks?"
@charliee1122 It all depends on whether your partner is trustworthy, such as a classmate or close friend. However, it's always advisable to maintain a professional agreement or have clear discussions to avoid potential issues in the future.
"As a VC-backed founder, I've seen firsthand how funding can help SaaS businesses scale quickly. But it's important to remember that funding comes with strings attached. You'll need to be prepared to give up equity and control of your company."
def not, you can bootstrap your way into a 6-7figure MRR SaaS. Of course you'll get that slower or at least you wont have to worry about impressing your investors.
Also bootstrapping will help you become a more creative business owner and will discover new ways to make money from your customers
The time you spend on securing funds is time you don't spend on working on your product/customers. Because raising funds takes a lot of time.
Not always a must. Bootstrapping's a solid path if you've got good customer revenue.
Occasional.ly
Most companies that receive funding tend to be less effective with that cash than a company that is built on a culture of bootstrapping. When you receive funding, it's easier to spend that many whimsically, than when you have to truly earn every dollar.