12 pros and cons of raising money vs. bootstrapping

For startup founders, it’s an age-old question: is it better to bootstrap or to raise funding? It certainly depends on your goals and your industry to some extent. But if you’re new to the startup world, what variables should you look at to determine which is better for your company in the long run?

To find out, I asked 12 entrepreneurs from Young Entrepreneur Council (YEC) when it’s necessary to involve outside investors. Their answers are below

1. Raise money to accelerate growth

While the answer depends on the type of business and business model, it’s often critical to raise money instead of bootstrapping if you really need to accelerate growth or invest in product development. For example, many SAAS businesses require large upfront investment in the product before they ever make a dime, so raising money is critical for those types of companies Read more…

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