Founders try and delay external funding until you have tested the market and found some level of product market fit
VC, PE & External Funding
Dec 3, 2024
I’m hearing it more and more: Founders try and delay external funding until you have tested the market and found some level of product market fit.
Bootstrapping is becoming a key foundational stage in the start up lifecycle.
Here is a great article by Darpan Munjal. Founder & CEO of Atom.com, the global naming & branding platform.
Initially launched as a bootstrapped startup, his business grew to curate the world's largest collection of brandable domain names
His key advice to founders:
“While taking the earliest possible funding, or the first funding offered, may be tempting, and you may even have investors knocking on the door, I encourage any founder to delay their fundraising until they have created a loyal customer base and a tried-and-tested product. Define your goals clearly and carefully, and seek funding only when it’s essential for the next step”
