Discuss: How do you know if you should bootstrap your startup?

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The startup fairy tale often begins with a question: Who can I get to fund my startup? The VC scramble has become so alluring that many founders forget there are other options. Bootstrapping is one of these options and, in some situations, may be a better one.

But how do you know if you should bootstrap your startup? Learn from the experiences of these two founders.

Editor’s note: Answers have been edited for clarity.

Leanne Beesley, founder and CEO of Coworker

I bootstrapped Coworker for 1.5 years before we took angel investment, and it had a major impact on the direction of the company. When you’re bootstrapping, you wear many hats and are responsible for multiple roles in your startup. This helps you get a really deep understanding of what works and what doesn’t.

It frustrates me when I hear people say they need to raise funding for their idea before they even start anything. That’s nonsense, and it also makes you look weak in the eyes of investors. Even if you think you’ll need investment later on, it’s important to prove that you’re prepared and able to put in the actual work yourself.

But bootstrapping is tough and involves a lot of sacrifices. You give up having a social life to work 16 hours a day. Friends and family think you’re crazy because you’re working for zero dollars building a dream instead of taking a cushy six-figure job. You’ve got to have relentless passion for what you’re building and a belief that the world needs it. Otherwise, you’ll crack under pressure and give up.

I spent most of my time bootstrapping in Chiang Mai, Thailand, not only because it helped me keep my living costs down but also because there are many other bootstrapping entrepreneurs there. In my experience, you have to protect your energy by living away from people who say you’re crazy and surrounding yourself with likeminded, bootstrapping entrepreneurs. Chiang Mai and Saigon are my personal favorite hubs, but there are many of them across Southeast Asia.

Now that we’ve raised US$1 million in angel investment, things are a bit different. As a founder, when you’re deciding whether to shift from bootstrapping to getting investment, make sure you think hard about your reasons for doing so.

For me, the number one reason was because I wanted mentors and strategic partners. But there are plenty of other reasons, both for raising angel or VC investment.

Let’s discuss