A highlight from Episode 558 | Thinking Through Funding as a Bootstrapper

Automatic TRANSCRIPT

Welcome to this week's episode of star for the rest of us. I'm rob walling this week. Have a great conversation with are both set if i recall. Intervals said is my co-founder with tiny seed. And he's also the founding partner of discretion capital which is an advisory firm. That advises sas founders. Who are in. Let's say the one to two million and up air are range when they decide that they want to and you need people who know what they're talking about eight hours one of them and the fun part of our conversation today is we. We batted around funding for bootstrap and really specifically. There's been a couple of conversations. I've had over the past couple of months that have got me thinking about talking about this on the show because obviously this funding has become much more viable for trappers. It's not just bootstrap adventure path. There's this whole thing in the middle that we talk about. Tiny seats is obviously part of that. And i think there's still confusion misconceptions. And it's just a morpheus and often hard to understand what's going on and kind of some of the reality of it and so we spend this whole episode batting around when suga bootstrap Think about raising funding. Should they not. When is it a good fit and we talk a little bit about terms and founders should think about raising and just everything we're seeing in the cool part is he and i have pretty different perspectives and i share perspectives on a lot of things being hundreds of tiny seed but i also have a lot of experience with other angel investments that i made before tiny see that are still around and i see different examples and he has experience with his discretion work and even the companies that he started before tiny seeds so my hope is that it is helpful in providing a little more of a level set and some more thoughts on this topic so with that. Let's dive into my conversation with novel. Set thanks for joining me once again. Started for the rest of us. Three only andro and we get stuck about funding and thinking through bootstrapping Or even these days. It's it's not just two options right. It's not just. Should i sell fund. Should i bootstrap. Should i raise venture. It's like there's all these these avenues you can go down. You know whether it's a tiny seed accelerator raising small angel round for a couple of hundred grand to me my take is. It's gotten more robust and easier for founders who are in the microcosm to the rest of us type community in that situation to raise on terms that make sense to them because ten years ago. I don't know of a single company in our space that could raise money. Not from essentially institutional who wanted him to become unicorns. I mean just like there's equity and the different types of investments to know that that wasn't the thing like five years ago like things like non-dilutive revenue based financing pipe. That thing yeah. A lot of options. I know when i did. My microsoft talk in vegas was us growth. Maybe is twenty eighteen. Where i set it might have been nineteen. I can't who can keep track with covet. It's just everything. Before code. And everything. After but i did a talk and i was kind of like talking about the state of bootstrapping and and how i saw more companies raising funding not to go venture track but to raise one round. You know maybe two and two hundred to five hundred grand. I pointed out customer dot io. I'm an investor investor. Churn buster right message cart. Hook lead us all these folks who are like. Yeah we're not. We're not looking ipo. You know we're not going to the full weight and as that happening. Obviously tiny came out of the need where it's like well. I only had so much of my own money to be able to put that in. We did tiny seat because there was a need on that side. It was pretty obvious that more kind of bootstrap ish capital efficient founders. Want to raise money these days. I mean we're on a mission for me. The reason why. I love doing this. Because i think that kind of investments in that kind of founder really enables them to quit their day job. An really like there can be many more founders like that. If you have the capital going to these kinds of places yeah and i wanna be clear obviously started to the rest of us five hundred whatever home almost five sixty now like. We've we've talked a lot about bootstrapping and we also talked about funding even going back to like twenty thirteen twenty fourteen. I talked about fun strapping with colin from customer dot.

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