The benefits of funding your own venture? Avoid discrimination and protect your vision

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Deciding whether to bootstrap your own project or tap outside investors is a critical question for anyone launching a company. The idea of using outside resources may be extremely appealing, but a recent LinkedIn survey shows that it might be harder than you think – particularly if you’re a woman. 

Part of enticing investors involves helping them see your vision and understand your game plan. Yet, LinkedIn uncovered that female founders are more likely to feel that “most venture capitalists did not understand the product or service I was trying to sell” than male founders (42% vs. 28%). The survey also revealed that sexism is a major challenge in the venture capital world. More than half of the female founders surveyed “have witnessed sexist episodes while trying to raise capital,” compared to less than 10 percent of male founders.

I’m fortunate in that discrimination has not been part of my entrepreneurial journey. I quit a lucrative job to build S’well from the ground up, dedicating all of my time and resources – yes, my life savings – to creating the highest quality, most fashionable beverage-bottle product on the market.

It was risky, scary and, some might say, plum stupid. But I knew what I wanted to achieve and I didn’t want to risk diluting my vision for doing good, or the quality of my product, by having outside investors chasing a bottom line. Six years later it is still one of the best decisions I could have ever made.

While there is no doubt we made countless more mistakes because we didn’t have backers to help show us the way, funding my own company gave me focus and purpose. I had a limited amount of time and resources to prove success. It also helped me sidestep a number of additional potential challenges entrepreneurs can face when jumpstarting a company with outside backing, such as losing sight of the very reason for starting the company in the first place.

I know not everyone has the right resources, at the right time, to get their idea off the ground. But if you do, the benefits to you, your business and your customers are plentiful. 

DECISION-MAKING YOUR WAY

It starts by being able to make your own decisions. You have the vision. You have the idea of how you’re going to bring it to life. Your timeline and budget may not align with the outsiders who are only looking at dollar signs. Using your own money affords more freedom to take the path that is in line with your aspirations.

It also gives you the option to say no.

People who know me understand how important this word is to my sanity. Today, it gives me space to think. At the launch of S’well, it allowed me to make decisions that fit my vision and felt right for the brand.

Many entrepreneurs can attest to the fact that decision making is a never-ending task. At the start, in particular, you’re making decisions multiple times a day that can impact the long-term development of your company. Having the ability to say yes or no when you choose puts the power of choice on your side. This means being able to pick the type of customer you want to target, even if it may take longer to hit revenue goals. Or using a higher-end material – like steel versus aluminum – to make your product, even if it means higher production costs or price points. It also means you can select the right partner for the long term, not just the right partner for right now because they have the right budget.

In my case, this freedom to decide helped me define the S’well brand, one that allows us to stand out in a crowded marketplace because of the quality, look, feel and purpose we represent. We were able to move at our own pace to create a brand that is rock solid by making mistakes, correcting mistakes and then sticking to what works best.

FROM LIMITING TO LIMITLESS

While taking on investors may be limiting in the beginning stages of a company, it doesn’t mean that the prospects are limiting forever. Once you’ve done the hard work to build a brand and prove it works, taking on investors can open you up to a whole new world of possibility and growth in the best way possible – on your own terms.

The conversation with investors changes when your business is thriving. You’ve already proven you know how to make smart choices. It’s clear that you can build a brand people want to support. You know how to keep the ship upright, regardless of the number of mistakes you might make. The discussions become more of a two-way discourse about the resources it will take to grow your vision and continue down the path of success. It’s where venture capital no longer represents something limiting, but rather the limitless possibilities at your fingertips.

At the end of the day, you have to do what is right for you and your business. I can tell you from my experience, there is an enormous sense of accomplishment when you make it to the other side of the conversation on your own.