Venture Capital vs Bootstrapping: Mo El Husseiny On How To Determine If Fundraising Or Bootstrapping Is The Right Choice For Your Startup
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 over your vision and profits? What is preferred, to have the seasoned oversight of an experienced investor, or to plow forward with a disruptive and pioneering ‘can do’ attitude? Of course, every situation is different, but what standards can be used to help a founder decide? As a part of this series called “Venture Capital vs. Bootstrapping: How To Determine If Fundraising Or Bootstrapping Is The Right Choice For Your Startup”, I had the pleasure of interviewing Mo El Husseiny.
Mo El Husseiny is a VC investor in tech start-ups. He is the founder of Ventura Capital which is focused on backing non-listed, pre-IPO stage consumer tech and cybersecurity companies. Mo´s vision is to identify, scale and enable tech innovations which can positively disrupt specific sectors and ultimately improve the wellbeing of our society.
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