Since entering the Blockchain space, we’ve had the privilege of collaborating with numerous startups, ranging from bootstrapped to heavily backed. While we appreciate the determination and ambition that goes into heavily backed projects, we’ve found that the most successful startups are typically lean and run by bootstrapped founders.

One of the main reasons why we prefer supporting lean startups is because they have less funding. It may seem odd, but this creates a unique advantage. Limited funds force startups to focus on the essential components of their business and prioritize resources. Every decision becomes critical, and businesses must be strategic with every step. In contrast, heavily backed startups often risk over-expanding, becoming more concerned with rapid growth and attracting investors, potentially losing sight of their original mission.

 By nature, bootstrapped ventures also make smarter budgetary decisions. Bootstrapping encourages experimentation and the use of creative problem-solving strategies. Rather than throwing money at a problem, bootstrapped entrepreneurs invest time and energy into finding cost-effective solutions. Lean startups and bootstrapped founders understand that if a problem arises, they must find a solution without relying on an injection of capital. This provides a mindset to make decisions that demonstrate financial discipline and ensures that every dollar is spent in ways that maximize value.

 Another critical benefit of being lean and bootstrapped is the focus on customer needs. For startups with limited funding, customer acquisition and feedback become primary to make sure that the product or service meets their expectations. Without customers, no business can survive. By not spending exorbitant sums on advertising, customer growth often relies on word of mouth and organic growth. This focus creates a stronger, more vibrant business that offers a more compelling proposition to potential investors.

 Lean startups and bootstrapped entrepreneurs are adept at making changes quickly. The ability to pivot when a strategy isn’t working is incredibly important, no matter what stage the business is in. Ultimately, the greatest asset that a lean startup has is its agility. This agility comes from nimble decision-making, quickly adapting to changes in the industry or marketplace. By focusing on what works and doing away with what doesn’t, lean startups can make the necessary adjustments to ensure continued success.

 We’re always impressed by how lean startups and bootstrapped entrepreneurs flourish with limited resources. The ability to make smart decisions, prioritize the customer experience, remain agile, and maximize every dollar has led to impressive success stories. Simply put, we’re confident that funding a lean startup is not only a valuable investment opportunity but one that can lead to massive success.