Over the next 12 months, Retention is pushing to hit a $1B valuation… and we haven’t taken a dime of VC money. Wondering why?
Here’s 6 BIG reasons we decided to bootstrap…
✔️ It Forces Discipline—VC money often leads to poor hiring decisions, expensive office spaces, company trips, and other frivolous spending. When the money is coming from your piggy bank, you just treat it differently.
✔️ Independence/Control—The minute you take someone else’s money, you have to answer to them. But when you bootstrap, you hold all the decision-making power.
✔️Dividends are AWESOME—When you bootstrap, you can grow the business AND get rich in the process. Investors will never let you earn what you deserve!
✔️Level of Ownership—The % you own stays extremely high when bootstrapping, versus the average 5% for VC backed founders.
✔️Incentive Alignment—Having the freedom to share equity in the company, allows me to incentivize our people so that they are driven to perform. Sadly, with VC money, there’s a lot less room to play there.
✔️Profitability—It’s way more fun to build a company that prints cash on-demand, rather than one that goes deeper into debt with the hopes of an eventual payout.
I’m not saying there’s anything wrong with raising money… I just love the bootstrapping model way more for the above reasons.
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