Mythical metrics don’t pay the bills: Sustainable growth over chasing unicorn status

Companies are often judged solely on share price and valuations that ignore fundamentals such as debt, profitability, and societal impact. There are multi-billion-dollar startups that are haemorrhaging money and have never turned a profit, yet are celebrated for their “unicorn” status.

Reaching that target is the driving force behind many ventures, but it means very little if your company depends entirely on investors to keep the lights on.

Growing slowly, but staying true

Not every startup is founded with the intention of selling up and getting rich. Many teams begin with a genuine desire to solve a problem or make a positive impact, rather than chasing headlines or billion-dollar valuations.

However, while many startups launch with a clear mission, it is difficult to maintain that focus once investors come on board. Investors are putting their money on the line with the expectation of strong returns. The industry norm is a 20 to 40% annual return rate and an exit multiple of up to 100x for early-stage investments, and that inevitably creates pressure to prioritise growth above all else.

When external capital far outweighs revenue, saying no becomes difficult. And if that funding stops, the runway quickly disappears, often taking the original mission with it.

Bootstrapping is a slower process with a higher initial risk, but it allows founders to build businesses that put customers first, rather than stakeholders.

Balancing risk and reward

There is no question that external investment can make the early stages easier. For bootstrapped startups, there is no safety net. Founders find themselves sweating over cents, second-guessing decisions, and worrying about every hire. There is rarely room in the budget for tools or subscriptions that would make day-to-day work easier.

Those hesitations can slow progress, but the long-term time-cost trade-off of bootstrapping is often positive.

Instead of spending energy building relationships with VCs, inflating metrics, or rushing out features designed to extract value, teams can focus on building what users genuinely need. That extra time allows for more thoughtful product development and fewer costly mistakes before features are pushed live.

Will it take longer to establish the business? Yes. But considering that 74% of high-growth digital startups fail due to premature scaling, often by injecting capital before achieving product-market fit, the slower route is frequently the safer one.

Purpose can be profitable

Becoming a unicorn does not have to be the primary goal, but neither does purpose require sacrificing profit.

It is possible to build products that deliver real value while remaining affordable, precisely because there is no pressure to extract maximum short-term returns. That approach tends to foster stronger customer loyalty, higher retention, and more stable revenue over time. High user metrics may look impressive in pitch decks, but they mean little if customers are cancelling as soon as free trials end.

In many cases, prioritising purpose and sustainability leads to profitability faster than expected. Well-known tech giants took anywhere from seven to seventeen years to turn a profit. Some bootstrapped businesses achieve it in a fraction of that time.

That outcome is rarely luck. It is usually the result of deliberate decisions focused on sustainability, discipline, and long-term thinking.

Bootstrapping to a billion: Expert tips for self-funded startups

• Prioritise profit first, not growth: Scaling shouldn’t cross your mind until you’ve proven that the business can survive without external capital. Prioritise turning a profit first, even if the numbers are modest, to validate demand, costs, and pricing. Problems are far cheaper and easier to fix when you’re small.
• Build a product that retains: In the early stages, you won’t have capital to mask churn, and one bad month could undo all your hard work. Your product must deliver long-term value, or you’ll spend all your time trying to replace lost users rather than addressing the issues causing them to cancel.
• Don’t spend without purpose: Don’t rush into implementing new software because your competitors are doing it, and don’t hire simply because there’s a little spare in the budget. One bad decision can make a huge dent, so even seemingly small choices require caution. If it doesn’t directly improve retention, revenue, or customer experience, don’t do it.
• Hire your audience: It’s your money on the line, so do you really want to gamble on big ideas without proof of demand? Customer insight is essential, but it’s also costly. The most cost-effective solution is to build a team that is your target audience. They’ve lived with the problems and know precisely how to fix them.
• Put your customers first: Without investors pushing for fast returns, bootstrapped teams can take their time to create real value for customers. That strengthens reputation, increases word of mouth, reduces churn, and ensures customers won’t jump ship if a venture-backed competitor offering a lower price enters the market.

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