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2025 Resolution: Bootstrap Your Startup to an Early Exit

Posted on Monday, Jan 27th 2025

Over the past decade, I’ve had the privilege of working with many bootstrapped entrepreneurs. I’ve helped several of them find Early Exits.

I love working with self-financed startups and modestly capitalized ones that operate in a capital-efficient manner applying the principles of bootstrapping.

I’ve also interviewed hundreds of investors, especially micro-VCs and angels who are playing in the early stage game.

I’ve asked all of them the following questions:

The commercial Internet has now been around for almost 30 years. Lots of stuff has already been built. Nowadays, there aren’t so many wide open opportunities out there. But there are many, many niche opportunities.

Some of these businesses need to be built for very small amounts of capital: Invest $1-2M, and sell for $10-15M. Do you have an appetite for this type of investment?
What about a notch smaller? Invest $250k-$500k and sell for $5-$10M?
What about a notch larger? Invest $5-10M and sell for $50-$60M?

As I expected, a large number of investors are still chasing Unicorns. They are interested in investing in companies that will go from 0 to $100M in 5-7 years.

However, I have spoken with a number of investors who recognize the niche opportunities and answer yes to my questions above.

Yes, they are interested in investing small amounts and harvesting through smaller exits.

In that strategy is the recognition that most acquisitions happen in the sub $50 million price-point.

Therefore, for all stakeholders to make money, a capital efficient strategy is required.

If you’re considering an early exit, come talk to me at one of my Free 1Mby1M Roundtables.

You can also jump into a full-year Acceleration by joining the 1Mby1M Premium program with me.

This segment is a part in the series : 2025 Resolution

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