Ask HN: Re: 37 Signals - List of successfully bootstrapped tech startups?
I'm guessing the 8+ submissions of the 37 Signals/Twitter satire were killed due to fatigue. It makes sense, the argument surrounding the VC vs. bootstrap model in the context of the Mint buyout generated 300+ comments, often heated.
Instead of rehashing the same arguments can we look at this empirically?
lets create a list of successful (defined by exit or long term profitability) tech start ups that haven't taken VC. Then we can compare it to the portfolios from the top 5-10 VC's. It won't conclude anything, but at least we can argue facts instead of opinions.
I'll gladly put together a comparison site if we can generate enough names:
Successful tech start ups that haven't taken VC:
1. Craigslist.org
2. PlentyOfFish.com
3. MyBlogLog.com
4. ClubPenguin.com (angel)
5. Threadless.com (took on a small amount of expansion capital, but was profitable before hand)
Others?
Published in 2009, this chronicle by @replicatorblog details the mechanics of building a profitable, self-funded business without venture backing.
The community focused on B2B customer acquisition channels, cold email vs SEO distribution, and balancing full-time employment with side-project development.
IIRC Kerpoof was acquired by Disney pre-funding (http://www.crunchbase.com/company/kerpoof)
I don't remember 37signals claiming you'll hit the jackpot with their proposed model either. Their entire argument can be summed up as "forget the freaking jackpot!"
Hoping to win the lottery is not a good way to make money. Instead, you should just build a profitable business that you can live very comfortably from. That's hard too, but it's a lot more feasible than winning the lottery.
And by winning the lottery, I mean getting an exit of a ridiculous amount of money, whether you were VC funded or not.
SAS Institute is the worlds largest privately owned software company. $3Bn revenue last year.
There are probably literally dozens with revenue in the tens of millions of dollars though. All the ones you listed are B2C, there'll be tons of very successful B2B service providers.
Two local [to me, Cambridge UK] ones spring to mind: Jagex and Red Gate Software both employee 150+...
I'm wondering if someone could use the CrunchBase API to do such a comparison–grouping companies by if they have any investments or not (assuming the data is accurate, of course). http://crunchbase.com/help/api
its probably backwards to look for exits in private companies. Usually the founders are 110% committed to building a long term company, and strive to ensure they own the majority of the company so they aren't told what to do.
"I'm guessing the 8+ submissions of the 37 Signals/Twitter satire were killed due to fatigue."
interesting. I guess VCs don't like it when they're not needed?
Dell/Microsoft
(http://www.entrepreneur.com/magazine/entrepreneursstartupsmagazine/2002/october/55776.html)