Looking at venture capital vs bootstrapping seems to be a clear case of asking:
What do you want?
I would probably lean towards bootstrapping – for I would rather have the control and the slow climb than such a small chance of success.
But who knows.
I mean, nobody has ever offered me a few million dollars where I had to decide.
The point is that there is no correct answer here, only trade-offs.
Interesting that Rand did venture capital with his first company, Moz – and now looks to be bootstrapping his new venture, SparkToro.com.
When choosing your own funding, think hard about what you want in the long run. Are you totally comfortable chasing a big exit and okay with the limitations on pay and control, and the high failure rates? If so, venture capital is exactly the model you’re seeking. Are you looking for complete control, profitability, and 100 percent ownership with slower growth? Bootstrapping on nights and weekends while you’re at a day job (or consulting, or living with a very supportive partner) may be the right match.
-Rand Fishkin, Lost And Founder