Bootstrap vs Venture Capital in 2025

Starting a business comes with many tough decisions, and one of the biggest is whether to bootstrap or seek venture capital (VC). Each path leads to different challenges, rewards, and risks.

I’ve been reflecting on this question a lot, especially through my journey of building Sigma School, a coding bootcamp in Malaysia. In this post, I’ll break down my experience with bootstrapping, the trade-offs, and why we’re not raising funds—yet.

Why I Chose to Bootstrap

Bootstrapping means funding your business with your own resources, keeping you fully accountable to yourself and your customers rather than investors.

For me, bootstrapping Sigma School was about staying grounded and scrappy. Every dollar had to count. When we built Codeo.ai (a "Duolingo for coders" app), we didn’t have a big budget, so we had to focus on building something engaging without unnecessary spending.

Each milestone—securing a new partner, launching a feature—felt like a real victory because every step was intentional and self-sustained.

The Trade-Offs of Bootstrapping

Of course, bootstrapping isn’t easy. Without VC funding, growth can be slower. There’s no financial cushion to fall back on when things get tough.

For example, when developing Jobier, our job automation platform, we wanted to build a tool that automatically applied for jobs on behalf of students. But without external funding, we had to prioritize features ruthlessly, test everything ourselves, and solve problems on the go.

Would VC funding have helped us move faster? Probably. But bootstrapping forced us to focus on real needs rather than hypothetical growth. That discipline has been invaluable.

The Pros of VC Funding

Venture capital offers speed and scale. With a cash injection, you can hire faster, expand quicker, and dominate the market.

Companies like Uber and Airbnb scaled rapidly because of VC backing. If we wanted to expand Sigma School across Asia quickly, VC funding could be a game-changer—allowing us to build more courses, secure more hiring partners, and reach a wider audience.

But here’s the catch: VC money comes with strings attached. Investors have expectations, and sometimes, that means compromising on your vision.

Why We’re Not Raising Funds (Yet)

Right now, Sigma School remains bootstrapped by choice. We want to get things exactly right before bringing investors into the mix.

Bootstrapping allows us to perfect our operations without external pressure, ensuring that we refine our processes and strategies at our own pace.

It enables us to make decisions based on true value rather than investor demands, allowing for more organic and thoughtful growth.

Additionally, by focusing on sustainability before scaling, we can build a strong foundation that supports long-term success without relying on external funding.

Once we’ve fine-tuned our business and are truly ready to scale, then we might consider raising funds. But for now, slow and steady growth is the right path for us.

Advice for Founders: Bootstrap or VC?

If you're facing this decision, start by asking yourself what kind of business you're building, whether you need funding to get started or can grow organically, and how much control you're willing to give up.

Bootstrapping is ideal if you want full control over your business, are comfortable with growing slowly but sustainably, and prefer making decisions based on customer needs rather than investor demands.

On the other hand, VC funding is the better choice if your business requires a large upfront investment to be viable, needs to scale quickly to stay competitive, and you're comfortable with investor expectations and potential compromises.

Final Thoughts

At Sigma School, we’re committed to delivering real value without external pressure. For now, bootstrapping keeps us focused, disciplined, and in full control of our mission.

If you’re navigating this decision, I’d love to hear your thoughts! Would you bootstrap or go for VC funding? Drop a comment and let’s discuss!