Excited to see so much innovation in the bootstrapping community about funding things. One of N teams I'm aware of working on this just announced:https://earnestcapital.co/funding-for-bootstrappers/ …
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If "funding for bootstrappers" sounds a little like a contradiction in terms, the reason for it is that the community of small software businesses hasn't *really* settled on a word that we love to describe ourselves in the way that the VC-funded trajectory uses "startup."
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Mostly bootstrappers are defined in opposition to funded startups not because they have a super moral commitment to particular sources of funding but because they happen to have growth ambitions / market sizes / etc which do not suggest viable chances of raising VC money.
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And aside from my beloved investors at the venerable firms of Visa and Mastercard ("We take 2 and 20... percent APRs!") there are very, very few funding sources in the US which are viable for firms with less than about a million dollars in revenue.
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Software businesses are particularly "weird" by the standards of traditional finance because they're insufficiently professionalized to be modeled like a doctor's office and they typically are extraordinarily asset light and inventory-nonexistent, which complicates underwriting.
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I think this is also a reflection of the same underlying dynamic which drove the profusion of angel investing in the SFBA: exits create ecosystems. Specifically, the market for smallish software businesses has become quite liquid in the last few years.
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That both creates opportunities for owners to eventually turn ownership into money *and* has some very savvy, very bored ex-operators sitting around with money in their pockets and deep, deep understanding of what a business with 2.3% churn and $450 monthly ARPU is worth.
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