The Startup Velocity Question: Venture Funding Bootstrapped Startups

As you know, I categorically support bootstrapped entrepreneurs.

There are numerous startups now that have achieved $4M-$5M in revenue without any external funding.

However, it has taken time. Sometimes, it has taken 5-7 years to get there.

VCs, however, are looking for velocity.

Their goal is to achieve $100M in 5-7 years.

So how does an entrepreneur with a $4-$5M bootstrapped company convince investors that (s)he can get to $100M in the next 4-5 years?

How is that a credible, defensible claim?

This question is at the heart of the Bootstrap First, Raise Money Later strategy that we practice and advocate in 1Mby1M.

The key to this is in establishing a clear positioning and GTM strategy with precise metrics.

If your positioning can show a defensible bottom-up TAM, and if your GTM validates a repeatable customer acquisition strategy that can be scaled aggressively by injecting capital, you CAN raise money.

Key Takeaways:

• Entrepreneurs need to convince investors they can reach $100M in the next 4-5 years.
• The “Bootstrap First, Raise Money Later” strategy requires clear Positioning.
• A defensible bottom-up Total Addressable Market (TAM) is crucial.
• With the right positioning and GTM strategy, bootstrapped startups can successfully raise venture funding.

My Question to You:

Can you explain to a VC how $X investment becomes $3X or $5X revenue with your GTM strategy?If you think you need help, consider 1-on-1 Private Consulting with me. I will diagnose and create a path forward in an hour.

Photo Credit: kinkate from Pixabay

This segment is a part in the series : The Startup Velocity Question