I had a great conversation with a founder who bootstrapped her software company to over $1 million in annual recurring revenue. I got a product demo and learned about the customers she’s signed to date. A big part of her ability to bootstrap was that she got multiyear agreements with a material amount of the price paid up front. She has big growth plans and is evaluating whether she should raise capital to accelerate her growth.
During our chat, she shared her seven-year goal—to reach nine figures in annual recurring revenue—and more of her thoughts about how she wants to get there. She likely isn’t going to tolerate large losses for the sake of growth. She also isn’t focused on an exit. Instead, she will likely achieve rapid growth in a way that’s authentic for her and her team—measured, calculated growth with an eye to profitability and ownership for the long haul.
This founder has built her business in an intentional way. She’s capitalized it using customer revenue, and that’s served her well. She’s positioned herself to have options so she can build the company in a way that fits her. I’m excited to follow her journey and curious to see how she decides to fund her growth plans.