February 4, 2023

Eureka News

All the News All the Time

Efficient growth? No problem, say bootstrap startups • Eureka News Now

Welcome to The Eureka News Now Exchange, a weekly newsletter for startups and markets. It’s inspired by the daily column Eureka News Now+, which is where it gets its name. Want it in your inbox every Saturday? Sign up here.

Investors these days not only want growth, they want a path to profitability — and it’s not always easy for venture-backed startups to suddenly correct course. But their Bootstrap peers have a leg up, as a recent report shows. let’s explore — ann

Cheaper growth

2021, Alex and I wondered out loud if startups that eschewed venture capital could have it all. The answer this year seems to be yes.

In fact, Capchase’s recent Pulse of SaaS report contains an interesting finding: In 2022, bootstrap SaaS companies will outperform VC-backed startups in many ways.

“Despite the war chest that VC-backed companies have raised over the past year, bootstrap companies outperform VC-backed companies in almost every metric we analyze,” wrote the SaaS-focused fintech.