Connect with us

Business

Efficient growth? No problem, bootstrapped startups say

Published

on

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

Investors these days want to see not only growth, but also a path to profitability — and it isn’t always easy for venture-backed startups to suddenly correct course. But their bootstrapped peers have a leg up, a recent report shows. Let’s explore. — Anna

Cheaper growth

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

Indeed, Capchase’s recent Pulse of SaaS report contains an interesting finding: In 2022, bootstrapped SaaS businesses are doing better than VC-backed startups in many respects.

“Despite the war chest of funding that VC-backed firms raised last year, bootstrapped businesses are doing better than VC-backed businesses across nearly every metric we analyzed,” the SaaS-focused fintech wrote.

Advertisement Find your dream job

Trending