Melissa Kwan
- Melissa Kwan is the CEO and co-founder of eWebinar.
- She says she doesn't have to answer to anyone else because she's bootstrapped.
- Kwan also says she can put happiness above maximizing profits.
I've built three startups over the past 13 years and consciously chosen not to raise venture capital for any of them, also known as "bootstrapping."
I chose bootstrapping because it lets me live a life that puts my happiness ahead of maximizing profits, which for me, is the life/work balance that makes building a startup sustainable.
Currently, I'm the co-founder and CEO of eWebinar, an automated webinar platform that helps companies run hundreds of webinars without needing to be there to host them live.
Here are 8 unconventional ways I get to live my life because I didn't take VC money:
1. I'm able to make my own schedule
I start my day at noon, go out for dinner, and work until midnight. I don't wake up with an alarm. I run errands when I need to and take naps when I feel like it. I take time off whenever I want, including every birthday.
2. I don't have to justify anything to anyone
My life partner is my cofounder. We travel nine months of the year and work on the road. We give everything for this company, but externally, it looks like we're always having fun and doing very little. I don't have the stress of needing to justify our relationship and how we spend our time to a board.
3. I don't have VC's telling us what to do
No VC can tell us to get an office and hire locally to prove their money is well spent. We have a team of contractors who set their own hours. We believe people are most productive when they choose where they live and when they work. Also, I prioritize lifestyle over revenue and don't attend events I don't want to. I don't attend networking events, conferences, or booths. I have a zero-call policy; no sales calls, no support calls — no exceptions. All communication is through email or chat.
We optimize for happiness, not dollars.
4. I'm able to grow slowly – the way that I want to grow
It took us 36 months to hit $1 million annual recurring revenue. We spent time listening to feedback and built something customers love so they'd stick around because we didn't need to manufacture growth for investors. And because it was the only way to build a sustainable business.
5. I don't have to worry about backlash
Since I don't have to worry about keeping up my public image for fear of negatively impacting fundraising, I can share my honest opinion with anyone I want without worrying about backlash. My answer to how things are going doesn't always have to be "I'm killing it!"
6. I don't need anyone else's approval to make major decisions
As the sole director and board member, I can make decisions around hiring and firing execs, budgeting, compensation, investments, corporation structure, stock options, dividends distribution, selling shares, exiting – as I see fit for the business.
7. I can raise capital on my own terms
A common misconception with bootstrapped companies is that they raise zero capital. In truth, they often choose to raise capital or sell a portion of their shares much later when there is significant revenue. If we ever take this path, it'll be on our terms.
8. I can sell the company when I want
This is the most important yet most underrated item on this list. I wouldn't have been able to sell my previous startup if we had VCs because the price would be too low for venture-level returns. I can't imagine working years towards a life-changing exit, only to have someone who never spent a day in my business tell me I can't. If that happened, I wouldn't be living as freely as I do now and wouldn't have cofounded eWebinar.
There was a time when I thought I needed venture capital to be a "real startup"
I was living in New York, and every startup founder I knew was raising money, so I thought that was the only path to success.
Ironically, because nobody would fund my last company and we had to sustain our own growth, we became laser-focused on generating revenue and eventually hit profitability. I realized then how liberating it is to not rely on someone else for survival. As it turns out, the only "funding" we needed was from paying customers.
As I was building a company on my terms, my VC-backed founder friends were constantly stressed over growth rates and how they were going to raise the next round of funding. I had complete freedom and they had very little.
While I enjoy the benefits of bootstrapping, it doesn't come without many obvious challenges
Growing a company with limited resources means you're constantly making tradeoffs between where you can and cannot invest in your business. And as a founder, you may not be able to pay yourself for years. That kind of sacrifice is not for everyone, and sometimes I do wonder whether it'd just be easier to raise capital.
But then I think about the way I get to live everyday as a result of having no boss, and I know I made the right decision.
Many people think bootstrapping is a financial decision. For me, it was an intentional lifestyle choice. I asked myself, "What kind of life do I want to live if I am going to build this company for the next 10 years?
Melissa Kwan is the CEO and co-founder of eWebinar.