Getting VC investment is like starting a game from level 3

I’ve always viewed VC money as starting a video game at level three with all the best gear. Sure, the gear gives you an advantage, but without level-three skills, you won’t last long. And playing with cheat codes is never as fun anyway.

The good news is, you don’t have to play that particular game. You can start at level one with nothing but your wits and determination.

I won’t tell you this game — bootstrapping – is easier. It isn’t. And it doesn’t guarantee success. But I can tell you from experience that it’s more fun, more rewarding, and the growth is more enduring.

Why I chose to bootstrap Jotform

My decision to bootstrap Jotform was deliberate and personal. Not only did I want to avoid VC pressures, I wanted to build Jotform on my terms, after my own vision and without any outside forces getting in the way. I also enjoy learning and knew that this path would offer endless opportunities for that.

Jotform now has over 25 million users around the world, in a market where even big companies like Google have joined the fray. It looks like that move paid off — 18 years later.

The appeal and drawbacks of VC funding

Despite being a big advocate of bootstrapping for most founders, I understand the allure of VC funding. Human nature defaults to immediate gratification. And, with media amplifying VC-backed success, the temptation becomes harder to resist.

Of course, there are immediate advantages to VC funding — rapid scale, access to top-tier talent, connections, and prestige. However, nothing’s free. These benefits come with some long-term implications. Here are a few:

Pressure for rapid growth: ‘Move fast and break things' is the standard mantra for VC-backed startups — thanks, Zuck. The problem is that sometimes you move so fast that you end up breaking the business itself. WeWork is a great example; the company grew rapidly, but its finances were unstable, leading to a failed IPO and lots of people out of jobs.

Focus on short-term gains: Investors usually want a quick and substantial return on their money. Because of this, VC-backed startups often have to choose between short-term income and long-term growth. For instance, Groupon grew so quickly that it couldn't keep up after going public and ended up losing money.

Loss of control and authenticity: When you get VC funding, you often have to give up some control. This can cause you to make choices that aren't in line with your original vision and can hurt your brand identity. Snapchat dealt with this when pressure from investors made the company shift its focus from privacy to public content and ads.

Increased stress and burnout: No matter what road you take, starting a business is stressful. But VC-backed startups have to deal with additional pressure from outside sources. The constant pressure to produce high revenue returns, which are sometimes unrealistic, can wear anyone down and cause stress.

Considering all these factors, I knew bootstrapping was the right choice to ensure Jotform grew the way I envisioned.

The benefits of bootstrapping

Retaining control and authenticity: When I got the idea for Jotform in 2005, I knew exactly what I wanted it to be. Because I bootstrapped the company, I had complete control over its direction and could bring my vision to life just as I saw it in my head. I did it on my own terms and in my own way. I didn't have to debate with anyone about which features to prioritize or convince anyone about the best direction for the company.

This freedom has allowed me to keep Jotform true to its mission and values, ensuring every decision matched our goals and addressed the needs of our users.

Building a strong foundation: I started Jotform with one skill — coding. But being bootstrapped, I had to take on every other role — marketer, product manager, customer support, HR, accountant, and even janitor. Since I was building the company slowly, I could take the time needed to learn each of these areas, only moving on when I’d mastered a role. This made me a well-rounded entrepreneur with a strong foundation, possessing both deep and broad expertise. I was dangerous because I knew every part of my business and understood my customers intimately.

It also meant that when it was time to hire, I knew exactly what skills we needed and the type of people who would fit our culture. That strong foundation, built from the ground up, is what has kept Jotform successful today.

Being customer-centric: The beauty of bootstrapping is that it forces you to put the customer first. It makes you focus on your customers' needs.

Your first customers often become like family because you spend so much time interacting with them, tweaking and refining your product based on their feedback. This was my experience with Jotform. In the early days, I had a forum where customers could ask questions and make requests, and I would implement their suggestions in real-time. This built a loyal community because users saw how much I, as the CEO, cared.

The drive of true ownership: When you know that your effort is directly tied to your company’s success, it is empowering. Owning everything that comes with your business — the good, the bad, and the ugly — is uniquely satisfying and a powerful motivator.

I was able to drive Jotform forward with pride and determination, even during the most challenging times, because I took ownership of both our successes and failures.

Managing stress and burnout: I mentioned this earlier, but it’s important to repeat because I’ve seen many founders burn out trying to meet the constant demands of VCs. By bootstrapping Jotform, I was able to grow it at my own pace and keep a good work-life balance. This approach helped me and my team work creatively and stay productive, which has been a big part of how we keep coming up with new ideas and growing.

Maximizing every resource: Without VC funding, I had to be very strategic with every dollar at Jotform. I focused on tasks that had the biggest impact and found ways to innovate with our limited resources. This constraint forced us to be more creative than we would have been otherwise.

The ultimate reward of playing on hard mode

Ultimately, I bootstrapped because I wanted to build something I believed in, at my own pace, and on my own terms. I wanted every decision to be mine, every risk to be carefully considered, and every success to feel personal. And that's what this path gave me.

Starting a company without venture money may seem on the surface like playing the game at the toughest level; it's difficult, demanding, and often slow. But in my experience, it pays off in a big way.