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Investors these days want to see not only growth, but also a path to profitability — and it isn’t always easy for venture-backed startups to suddenly correct course. But their bootstrapped peers have a leg up, a recent report shows. Let’s explore. — Anna
Cheaper growth
In 2021, Alex and I wondered out loud if startups eschewing venture capital could have it all. The answer this year seems to be yes.
Indeed, Capchase’s recent Pulse of SaaS report contains an interesting finding: In 2022, bootstrapped SaaS companies are doing better than VC-backed startups in many respects.
“Despite the war chest of funding that VC-backed firms raised last year, bootstrapped companies are doing better than VC-backed companies across nearly every metric we analyzed,” the SaaS-focused fintech wrote.
Anna Heim
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