Kennet Partners reposted this
Managing Director at Kennet Partners. Investing in bootstrapped and capital efficient technology business
**Investing in Bootstrapped Companies: Key Challenges** 🥾👢 I love investing in bootstrapped companies for several reasons: - **Exceptional founders** 🚀: Being able to scale without external capital is extremely challenging. - **Customer-centricity** 🤝: Customers become the bank, fostering strong relationships. - **Efficient capital allocation** 💰: Thoughtful resource management often leads to better outcomes. - **They are sustainable, sensible companies** 🌿 However, common challenges of bootstrapped companies include: 1. **Limited Systems/Reporting** 📊 2. **Very Lean Management Teams** 💼 3. **Technical Debt** 💻 4. **Inbound to Outbound Sales Shift** 📢 5. **Scaling Challenges** 📈 To succeed in scaling, you need plans for: - **System implementation** 🛠️ - **Talent acquisition** 👥 - **Technical debt management** 🔧 - **Sales strategy evolution** 📈 - **Scaling infrastructure** 🌐 Investing in bootstrapped companies is a craft that demands expertise and patience 🚀 #VC #Bootstrapped #GrowthStrategy #Investment #StartupLife Kennet Partners Photo: Sara Blakely who bootstrapped Spanx to a $1.2 billion exit and Yvon Chouinard who bootstrapped Patagonia to $1.5 billion in revenue.
Fractional CTO | Co-Founder @ D·nvented Labs. | Using AI to build Products that protect Humans from AI.
3moHillel Zidel these are excellent points. Neither of these challenges are a problem for us. We shored up these holes early on. My issue is understanding why a successfully bootstrapped company with 50 customers would then decide to work with your company? You don't seem to get in early enough to be most effective. Just curious.