I've recently been analysing the answer to this question and have put together a list of the pros and cons for each.
Yes to Bootstrapping
- It reduces or avoids the dilution of founders' equity.
- You become an entrepreneur to be your own boss. You keep full decision-making control.
- You don't have external obligations and expectations from investors.
- You can choose to grow your business at a pace that you want to. Most investors expect you to grow as fast as you damn well can.
- It forces you to be lean.
- It forces you to focus on revenue right from the start.
- Necessity is the mother of innovation.
- Less time is spent raising money, thus you have more time to focus on your product and customers.
- You can still choose to raise funding later when you'll likely be in an advantageous