Only 14% of the fastest growing 500 US companies were venture backed

I've also known VCs who have said they wouldn't take VC money. VCs expect a high rate of return on the money - they take the risk expecting a high return. And if you can get the return on your own money, why not take it?

So why go with a VC?

1 - You have no alternative source of income to grow the business.

2 - There is a significant opportunity to scale the business that requires a larger investment, and traditional non-specialized sources of financing won't understand it. (Your local bank or your rich Uncle Jack won't understand why viral marketing and a server farm could enable your business grow 100x, a good VC will.)

3 - Knowledge and Relationships. This is the main reason. A good VC may have been on 30 or 40 boards. They have great pattern recognition for success and failure. They know your industry. Your suppliers and potential customers will take their call. They know how to deal with investment bankers, who won't want to screw them over.

It's worth noting that the difference between a good VC and a bad VC is enormous, but they both expect the same return out of you.

Vivek Wadhwa's survey research pinned the percent of VC-backed companies at somewhere around five percent? So there is some evidence that VCs gravitate towards higher-growth businesses, but only at the margins.

Interestingly, the list of high-growth companies in this piece shows that most of these funded were self-funded and only took private equity or investment after several years.

So, are these high-growth companies seeking VC funding and not getting it?

Or were the entrepreneurs not aware of VC as an option? Did they avoid it altogether?

If you're in such a high-growth and bootstrapped company, I'd love to hear why.

Mr. Schramm, president of the Kauffman Foundation says that if his children would start companies, he would advise them stay the hell away from investors and bootstrap!