Why more founders are choosing bootstrap first, raise later?
The quiet comeback of bootstrapping in a VC-dominated world. It isn’t anti-VC. It’s pre-VC.
The rise of “vibe-coding” has made it easier than ever to bootstrap and ship ideas fast — but sustainable growth still demands much more than good vibes and fast execution.
You can now build an MVP, test with customers quickly, gather feedback, and keep iterating — until you're in a position where fundraising isn’t about meeting others’ terms, but choosing the right partners on your own.
While there is an undergoing shift around bootstrapping and growing more profitable and sustainable company then a big VC backed label.
But raising money is still there, it’s just evolving fast.
Only 15.4% of startups that raised seed funding in early 2022 were able to raise a Series A within two years, compared to 30.6% of companies that achieved this milestone back in 2018.
Today, you can build an MVP, gather feedback, iterate in public, and grow to a point where you raise funds on your own terms — not out of desperation.
But the thing is success in today’s fund raising landscape requires a more strategic, relationship-driven approach. If I would be planning to build a startup today, I would bootstrap it, go through accelerator programs, build relationships with angel investors (so that when the time comes ask them for funding) and if required, build a VC backed company.
📉 Let’s talk numbers
Before diving into strategy, here’s what the funding landscape actually looks like:
Only 29% of seed-funded startups raise a Series A
SaaS Series A success dropped from 37% (2020) to 12% (2022)
Over 1,000 startups get "orphaned" each year between seed and Series A
48% of venture funding in 2024 went to AI startups
Startups from top accelerators are 23% more likely to raise a Series A
The gap between seed and Series A is widening.
I believe it's not just because of AI hype, economy, market uncertainty, or layoffs — many founders today don’t want to build for investors. They want to build businesses on their own terms.
I saw this firsthand at Founder University by Launch Accelerator — and through conversations with other early-stage founders trying to navigate this exact moment.
💡 So, how should you think about funding today?
Let’s break it down into a smarter sequence.
1. Start with a good accelerator
If I were starting today, I’d bootstrap first, then join an accelerator that helps turn an MVP into a real product.
Why it works:
Accelerators give you funding, structure, brutal feedback, and access to a trusted network of angels.
They push you to answer hard questions:
– Is this idea worth pursuing?
– Are people willing to pay?
– What needs to change before scaling?
More importantly, they keep you focused on customer traction over investor polish. And when the time comes they introduce you to a network of angel investors which won’t be cold intros but from trusted networks - making a big difference.
“Startups from accelerator programs raise more capital, generate higher revenue, and exit more often.”
✅ Pro tip: Not all accelerators are created equal. Look for ones that are tightly connected to your industry, have a clear value proposition (MVP to market-ready), and offer real distribution and fundraising support. Some examples:
Antler (global)
On Deck Founders
Founder University (Really great to take your idea from MVP to actual product)
TinySeed (for bootstrapped founders)
First Round’s Angel Track (community, not funding — but super valuable)
2. Build relationships with angel investors early
Don’t wait until you need money.
“Over 70% of venture deals come from investor networks — not cold outreach.”
Angel investors aren’t just writing checks. They’re betting on you. The earlier they know you, the more likely they are to invest when you’re ready. They want to believe you’re the kind of founder who:
Won’t give up easily.
Will find a way through ambiguity.
Has a unique insight into a problem space.
But here's the catch: they see thousands of decks a year and invest in only a handful.
If they’ve seen your name, followed your progress, or heard you on a podcast or in someone’s newsletter, your odds improve dramatically. Familiarity builds trust.
How I did it:
Shared monthly progress updates (without asking for money)
Engaged with their content
Showed consistent execution
When I finally asked for funding, it was a natural continuation — not a cold pitch.
✅ Build a simple investor CRM (Notion or Airtable):
Track 30–50 angels by interest, past deals, values
Log every touchpoint and build momentum over time
3. Raise with leverage — not out of need
Here’s the harsh truth: VCs ignore first-time founders with no traction. It’s not personal — it’s math.
But if you:
Bootstrap to early traction,
Go through a strong accelerator,
Build early investor trust,
Then you’re de-risked — not just an idea, but a founder with proof.
Startups that bootstrap to $1M ARR raise at 40% better valuations.
Bootstrapped startups crossing $5M ARR are 2x more likely to be profitable.
Pre-Seed to Seed Success Rates:
Founder Institute benchmark: Pre-seed typically ranges $25K-$2M with 2+ team members and MVP
Seed stage requirements: $50K-$200K monthly revenue, 15-30% MoM growth, product-market fit
Series A requirements: $200K+ monthly revenue, 25%+ MoM growth, commercial-ready product
TL;DR — The new funding strategy
Bootstrap first: build real traction and stay in control
Use accelerators: for clarity, support, and warm investor intros
Build investor trust: way before you fundraise
Raise later, with leverage: not desperation
Fundraising today isn’t just about capital — it’s about credibility.
Start lean. Build what matters. The right investors will follow.
Thanks for reading, see you all next time!
Ritika 👋
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