Bootstrapped and lightly-funded founders are looking much cooler right now

Bootstrapped and lightly-funded SaaS companies looked pretty uncool the last few years when they didn’t raise big VC funding.

These practical startups are looking pretty cool now.

  • They aren’t laying off 20%-50% of their people like their drunken-funded startup peers.
  • They aren’t massively changing strategies or cutting budgeted investments.
  • Their employees aren’t leaving because their stock options are worthless.
  • They aren’t beholden to financially-driven boards to do unnatural things to survive or make unreasonable numbers.

There is a lot of turmoil at the tech companies that raised a big chunk of money in the last two years.

VC investment size, growth expectations, and valuations were just insane last year in Silicon Valley and a few other tech hotspots.

We are seeing the re-setting of expectations in the public stock markets. This is also happening in the private VC-investment funded-startup game.

This new reality is really PAINFUL for the startups that raised and spent their unreal funding. A lot of them won’t be around two years from now.

But this re-setting is NOT happening in the steady, practical SaaS companies that are either breakeven or slightly profitable.

This is the time for these practical founders to take advantage of the turmoil with their funded startup peers.

Now’s the time to hire the best people and re-commit to your long-term product and growth plans.

And maybe even raise a little practical funding. Investors didn’t stop investing. You just look like a better investment all of a sudden.

This happens with every pullback in the stock markets and with VC investment.

Reality wins in the long run every time.

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