Venture Capital vs Bootstrapping: Mo El Husseiny On How To Determine If Fundraising Or Bootstrapping Is The Right Choice For Your Startup

An Interview With Ben Ari

Generally, the position is, it depends. This is a function of how best do you get to a cash flow generative position. Sometimes you have to invest to grab the market in time, just like the VGI solution which I mentioned. But remember that a VC wants a return, and you are giving up equity to bring them in, so how does the equation work in terms of ROI. Are you better off alone where you may not reach scale, you may be too slow, you may lack expertise. Or are you better off with VC backing which may bring expertise, knowledge, the ability to take risks and move faster, et cetera.

Founders are often faced with the nagging question of whether Fundraising or Bootstrapping is the best choice for them. What is better, having access to capital or maintaining full control…