You’ve built a bootstrapped company. Clear line of sight to profitability (actually profitable recently). Why should you raise VC?
Well, many times you shouldn’t. That’s a fair take. Who needs external investors when you have full control and full optionality?
But here’s why other founder do choose to engage with venture even though they don’t “need” it.
1) Cash for Growth
Could you accomplish a years worth of growth in 6 months if you had more cash to put to work?
If the answer is yes (and it usually is) perhaps trading equity for capital is useful to boost growth. Growth is always the biggest input into company valuation and ultimate sale price, should that path ever be attractive.
(Btw cash can also be incredibly useful to have on hand in case of unpredictable emergencies. Just ask startups who were running too lean in March 2020).
2) Brand for Hiring
Great talent can work at many startups. Being backed by a well-known fund can improve your standing in the minds of that next valuable engineer.
Beyond just brand, VCs will often extend themselves by personally recruiting talent to your company.
3) Network for Everything
Need a contact at that major prospect? Your VC might have one. Need an intro to this technical expert? Your VC might have one. Need to talk to a founder whose been through this tricky situation? You get the idea.
Good VCs bring network leverage to their portcos.
If none of these reasons resonate, cool avoid VCs and keep building. Many possible games to play and venture just happens to be the loudest 🙏
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