Then → Now · 2026
The post's bootstrapping poster child, MailChimp, later sold for $12bn without ever raising outside money, while two of its other examples had already gone bust before it was published.
What it said (2018) ↓
Alternatives to VC: bootstrapping (MailChimp, Behance, Nasty Gal)
friends and family (Shopify, GitHub, Cards Against Humanity)
What happened (2026) ↓
MailChimp became the proof of bootstrapping.
Nasty Gal was already a failed example when the post ran. It filed for bankruptcy in November 2016 and Boohoo bought it for $20m in February 2017. Refinery29 · TechCrunch, 2017-01-09
Verdict · Held up: 6 / 10 · Full 2026 update
- Most businesses were not a fit for venture capital and should consider other ways to fund themselves.Came true sharper in the AI-concentrated market of 2025–26
- MailChimp showed how a company could grow successfully by bootstrapping.Came true
- Nasty Gal and Pebble were examples of start-ups funded through bootstrapping and crowdfunding.Outdated already failed at publication
- Angel investors typically wrote cheques of $25,000 to $50,000 for start-ups.Unverified
- Crowdfunding meant reward platforms such as Kickstarter and Indiegogo, with no mention of equity crowdfunding.Outdated
Original post · 16 January 2018
Sources of Funding Besides Venture Capital
You have thought of a million dollar idea for your startup; now you need to find a way to fund your venture! The most popular way to raise money is through venture capitalists. Choosing the right sources of funding is a very strategic move for your startup, and looking into alternative sources besides VC funding could get you better results in the long run. We listed a few alternative sources of funding for your startup.Alternative Sources of Funding
Bootstrapping
One of the best ways to fund your startup is out of your own savings. Self-funding your business from your savings will cut a lot of unnecessary costs while starting up. The time you save going to potential investors can be used in building your business. Since there is no outside funding, you will have equity and full control of your startup. Some examples of successful bootstrapped companies are MailChimp, Behance, and Nasty Gal.Friends and Family
Tap into your network. You never know who might believe in your idea enough to bankroll you. Friends, family, high net worth individuals, and people from the industry may all be viable sources of capital. A few successful examples are Shopify, GitHub, and Cards Against Humanity.Angel Investors
Angels are wealthy individuals who invest amounts ranging $25,000 to $50,000 in startups and small businesses, usually in the second round of funding; after you've been funded by friends or family or from your savings. For startups, this is much easier and logical than going to a VC, as VCs prefer making huge investments and require 10 to 30 times returns on the amount they invest. Some of the successful companies that got their start with angel investors are Starbucks, Amazon, and Apple.Crowdfunding
Another way to fund your business is to launch a Kickstarter campaign. A lot of entrepreneurs have raised much more than the initial amount to set out to raise. Your potential customers have a chance to pre-order your product before it is even designed. Another popular platform for crowdfunding is Indiegogo. Crowdfunding works well for physical products that are unique and solve specific problems for customers. But keep in mind that you will have to market your product if you want to hit your goal. Successful Kickstarter campaigns include the 3Doodler, the Pebble watch, and the Formlabs 3D printer.Incubators
An incubator is basically your go-to solution for office space and support infrastructure. Prior to launching, your startup will have various tasks such as registering your company, hiring, marketing, branding, infrastructure and equipment needs. An incubator can offer you these resources to complete these tasks so that you can focus on building your startup. They also offer industry connections and consulting. Incubators provide these services in exchange for equity in your startup. Examples are Dropbox, Airbnb, and Stripe.Commit to a Huge Customer
Certain customers will be willing to cover your production costs in order to buy your products before anyone else can. In return, you can give them control of your process and dedicated support. This is great for business development; your first few huge customers can help you sustain your startup.Bank Loans and Lines of Credit
If the amount of funding you need is small, try applying for a business loan. Banks often require you to show collateral such as your house and/or will require a personal guarantee.Government And Private Grants
If your startup is in the educational, social or R&D in the technology sector, government or private grants will suit you very well. The major plus point is that the grants don't dilute equity. And there you have it, a few ways you can get one step closer to making that dream project a reality. Understanding that there are various sources of funding besides venture capital is very important, as all businesses might not be the right fit for VC funding and sometimes might not even need it. This article was contributed by Ruchika Shankar.2026 update
What happened after this was written
Claims then:
- Alternatives to VC:
- bootstrapping (MailChimp, Behance, Nasty Gal)
- friends and family (Shopify, GitHub, Cards Against Humanity)
- angels at "$25,000 to $50,000" (Starbucks, Amazon, Apple)
- crowdfunding on Kickstarter or Indiegogo (3Doodler, Pebble, Formlabs)
- incubators (Dropbox, Airbnb, Stripe)
- a huge anchor customer, bank loans, and grants
- VCs "require 10 to 30 times returns".
What happened since:
- MailChimp became the proof of bootstrapping. Intuit bought it for about $12bn in 2021, in what was reportedly "the largest-ever acquisition of a privately-held bootstrapped company" (that wording could not be confirmed from the primary source). TechCrunch, 2021-09-13 · Forbes, 2021-09-13
- Nasty Gal was already a failed example when the post ran. It filed for bankruptcy in November 2016 and Boohoo bought it for $20m in February 2017. Refinery29 · TechCrunch, 2017-01-09
- Pebble had also already failed (sold to Fitbit in December 2016, not re-sourced this pass). In a twist, Google open-sourced PebbleOS in 2025 and the founder's Core Devices shipped new Pebbles. Hackaday, 2025-01-28 · The Register, 2025-11-25
- Formlabs reportedly led the global professional 3D-printer segment with 38% of shipments in 2025, according to Wikipedia citing CONTEXT (the primary report was not found). 3Doodler has raised no outside funding, according to Tracxn. Wikipedia: Formlabs · Tracxn: 3Doodler
- Equity crowdfunding opened up after the post. The US raised the Regulation Crowdfunding cap from $1.07m to $5m in March 2021, which the post (reward crowdfunding only) does not cover. SEC · Republic
- VC swung hard, from the 2021 peak to 2023 at $285bn, down 38% and the lowest since 2018. 2025 then reached about $440bn with nearly half going to AI, and H1 2026 hit a record $510bn, with AI taking 80% of Q1 and more than 70% of Q2 funding. Non-AI founders face a thinner VC market, which strengthens the post's thesis. Crunchbase, 2023 · Crunchbase, H1 2026 · VC Journal, 2025
- Dropbox, Airbnb and Stripe are Y Combinator accelerator alumni, not incubator examples. That is a categorisation slip (general knowledge; not re-sourced this pass).
Named tools/orgs status:
| Name | Then | Now | Evidence |
|---|---|---|---|
| MailChimp | Bootstrapped example | Acquired by Intuit ~$12bn (2021) | Forbes |
| Nasty Gal | Bootstrapped example | Bankrupt Nov 2016; Boohoo brand since 2017 | Refinery29 |
| Behance | Bootstrapped example | Adobe-owned (acquired 2012; not re-sourced) | — |
| Pebble | Kickstarter example | Failed 2016; revived 2025 by Core Devices, open source | Hackaday |
| Formlabs | Kickstarter example | Market leader (38% pro segment, 2025) | Wikipedia |
| 3Doodler | Kickstarter example | Operating, never investor-funded | Tracxn |
| Kickstarter / Indiegogo | Platforms | Active (not re-checked in depth) | — |
| Shopify, GitHub, Cards Against Humanity, Starbucks, Amazon, Apple, Dropbox, Airbnb, Stripe | Examples | All still operating (GitHub is Microsoft-owned; not re-sourced this pass) | — |
Verdict: "Most businesses aren't a fit for VC": Came true, and is sharper in the AI-concentrated market of 2025–26. MailChimp as the bootstrapping exemplar: Came true. Nasty Gal and Pebble examples: Outdated, already failed at publication. Angel cheque sizes and "10–30x": unverified for 2026. Missing equity crowdfunding: Outdated.
Headline finding: The post's bootstrapping poster child, MailChimp, later sold for $12bn without ever raising outside money, while two of its other examples had already gone bust before it was published.
Re-verified 3 November 2026: 6 claims confirmed, 1 corrected, 3 hedged, 0 removed.
Researched 30 September 2026 and re-verified against the sources on 3 November 2026. Sources are linked in each point. Items marked "unverified" could not be established and are not guessed.