Fred Wilson runs a guest post today about the glories of bootstrapping.
David Geller makes it clear that it is all about me as he relates how much more of a company you have to build to get the same financial reward if you raise funds and set up option pools as opposed to bootstrapping.. So true. But good dilution leads to great, and just, rewards to staff and investors.
But how much better to use Facebook as a model where 30% of the company is owned by staff and very early angels. Do read the Guardian article by Jemima Kiss: Facebook tears up the rulebook. It would make a great business plan resource.
In my experience it is the people who talk loudly about the importance of teams who never offer equity. Put you money where your mouth is!!
Great comments in the post. Interestingly they seem to have sold out to a VC backed company. In the comments David Geller makes it clear that there was no option pool for staff so the winnings were only divided by two. Selfish entrepreneurs?
However the comments also make it clear how many people want to build a business and respect those who have achieved it. Good to be part of the club even if only once!