Still, that ceiling can be quite high; I know a couple folks doing north of $100m annually that bootstrapped.
We're an LLC, so we're allowed to take draws at the end of each year vs. having to wait for a liquidity event (IPO or acquisition).
That said, I don't think most saas -- particularly midmarket or enterprise targeting -- can be bootstrapped. You just require too much engineering (ie eng salaries) in the first couple years to self-fund.
The converse problem is that there are lots of capital intensive companies, and none of them can get VC funding because the VCs are all chasing 18 month unicorns.
First, just because you made it work, doesn’t mean that applies to everyone. Congrats on your success, but let’s not generalize with one data point.
Second, what about marketing costs? What about a first-mover advantage and staffing up to win that advantage? What if you want to tap into a network (YC, tech stars, etc.)? What if you really value the good feeling of being validated by having a round of financing? What if bu raising capital you get attention that kickstarts your business that otherwise wouldn’t have come?
We've actually grown entirely through word of mouth. 0 ad spend after 2 years. We also happen to be a late entrant to the market. Companies like Swagbucks have been around since 2008.
In this case, you just accused someone successful of an old and tiresome argument. That’s unhelpful at best.