Profitability and sustainability are becoming more mainstream as venture capital investments scale back in 2023. Some say the best companies start with bootstrapping first before raising venture capital. There’s no doubt that the best form of funding is always paying customers.
Founder and CEO of the real estate tech company Perch, Alex Leduc initially bootstrapped the company before raising. Alex shared his philosophy on when it makes sense for startups to raise capital:
“My general philosophy on raising capital is that it only makes sense when you are losing more in revenue/profits than you’re looking to give out in equity. At some point, you will face opportunities to grow faster which usually result in short-term burn for long-term profit. In this situation, you likely would need to raise capital.
Strategic investors can make a huge difference for your business and they will want a piece of the pie to stay motivated to help you. If you are going to give up equity relating to performance of any sort, I strongly recommend vesting it and tying it to tangible metrics to ensure there’s a fair exchange of value.” – Alex Leduc Founder & CEO at Perch
Whether bootstrapped or VC funded, founders need to figure out what makes sense for their companies at their current stage. Each stage of venture represents its own unique challenges: ‘what got you there, won’t get you there.’
Bootstrapping is certainly a great way to start, as it is becoming more mainstream. Here is a list of some upcoming bootstrapping companies that have achieved remarkable growth without any venture capital.
31. Canada Mentors
Canada Mentors is a specilized recruitment firm that Mentors and connects highly skilled technical talent in Software Engineering, IT, Finance and Accounting with leading North American companies. In the last 3 years, they have mentored 1000+ job seekers and helped 150+ companies across Canada and US hire highly skilled talent. Check out the interview with Canada Mentors here.
30. Moxy Patch
MoxyPatch is an over the counter device used to prevent the mild to moderate leaks due to stress urinary incontinence (SUI) in females.
29. Souqh
Navigating the Canadian real estate market can be tedious. Souqh is Canada’s only all-in-one real estate and home services marketplace providing technology and services to help real estate professionals deliver unparalleled client experiences. Souqh brings together clients, realtors, mortgage brokers, law firms, inspectors, and associated industry partners to deliver a complete digital experience for their client’s home ownership journey – all in one place.
28. Borealis Data
Borealis Data creates tools to help developers increase the security of their apps. If you’re using Heroku and PostgresSQL, head to borealis-data.com to learn more about the best way to protect your data, and your customers.
27. Litespace
Litespace is a SaaS platform solving the challenges of the hybrid workplace. By providing smart office scheduling, event recommendations, and analytics, litespace empowers businesses to foster a thriving company culture and boost employee productivity.
26. SM Builder AI
SM Builder is a social media content assistant to help business leaders create great content, get noticed, increase engagement and build communities.
25. NeuraVue
NeuraVue is a start-up with a focus on bringing innovation and effectiveness to the video surveillance industry. It is a mobile app system that uses AI and Machine learning to detect various cases including Physical Abuse/Self-harm, sexual harassment, human behavior analysis, and fall detection.
24. MWM Consulting
The great thing about service-based businesses is that they can start generating sales from day one. MWM Consulting, founded by Matt Parkin, has a following of over 10K+ on major social media. MWM Consulting helps busy founders and entrepreneurs leverage LinkedIn to close more leads and scale their personal brands.
23. Javelin Sports
Javelin Sports is building the platform to find sport leagues and pick-up games in your area. It facilitates over 150+ Games Each Month with over 4,000+ monthly active players.
22. Motiv
Founded by Clark Lai, Motiv is an award-winning digital innovation firm. Motiv works with global organizations to design, launch and scale new business ventures and digital products.
21. Cansulta
Cansulta brings direct access to vetted world-class business consultants. Small businesses and startups can get access to world-class expertise on demand.
20. Sprout Family
Family planning benefits are on the rise. Founded by Suzanne Zaffino and Jackie Hanson, Sprout is a digital concierge that supports Canadians in their diverse, personal family building journeys. Family-building benefits are a universal need, and they work with Canadian employers to create a benefits package that supports a modern workplace.
19. CV Partner
CV Partner is an innovative Scandinavian company that specializes in helping Professional Services Firms automate the management of their CVs, resumes, and case studies. The CV Partner proposal automation solution helps streamline the tailoring of CVs and case studies for public tenders, bids, and proposals – all with bid- specific templates. The company has just announced their expansion into the vibrant Canadian market. This exciting move marks a significant chapter in the company’s journey and it represents a new opportunity for CV Partner to scale.
18. Tenure
Retention has become a major key metrics for companies. It’s not just about recruiting top talent talent but keeping it in your organization. Tenure is building an AI-powered employee rewards, recognition, and savings platform that improves company culture and drives new business.
17. Salubrum
Salubrum makes medical tourism made safe, affordable, and enjoyable. Salubrum aims to connect patients seeking elective care through medical tourism with a safe, affordable and easy experience
16. Fore Genomics
The first genetic test focused on predisposition testing for newborns, infants and children. Fore’s goal is to make healthcare more proactive.
15. Biiibo
Biiibo is an on-demand supplier of building materials. It is revolutionizing the construction industry by streamlining the purchase and delivery of supplies. Check out the full interview with Biiibo’s CTO here.
14. LeanSuite
The LeanSuite is a cloud-based, all-in-one lean manufacturing software that offers various built-in apps designed to elevate all aspects of a manufacturing company’s operations.
13. Venu
Founded by Adham El-Khadem, Venue is the online destination that brings people together to meet, celebrate or create. It started in MENA and currently expanding in the North American market rapidly.
12. HUEX Labs
The next time you pull into a drive thru, the voice may be powered by HUEX Labs. The company is helping businesses capture the power of Voice AI technology. It is built by franchisees to bring better user experience to the masses.
11. Clay Financial
Clay Financial is building innovative solutions to help Canadians tap into their home equity. Its Home Equity Sharing Agreement (HESA) is the first of its kind in Canada, allowing homeowners to convert some of their equity into cash in exchange for a share of their home’s future appreciation. With no monthly payments and no risk of eroding existing equity, the HESA is a flexible alternative to traditional debt products like home equity lines of credit and reverse mortgages. Clay Financial’s co-founders combine experience in technology and financial business strategy with deep expertise in financial product innovation. The waitlist for its HESA in the Greater Toronto Area is currently open at https://clay.financial.
10. HiredHippo
You don’t need to browse thousands of jobs, you just need one high-quality one. HiredHippo has built a marketplace to connect top talent with top employers. The company has an impressive list of client base including TouchBistro, FundThrough, Empower, GrowthGenius, and Coinsquare.
9. Nu Benefits
Founded by Marcus Acaster, Nu Benefits offers group benefits without the high fees and commissions. The company is on a mission to keep your employees happy and healthy without breaking the bank.
8. Toast
Toast is building the ultimate platform for empowering women in tech with job opportunities, growth, and much more. It is founded by Marissa McNeelands and April Hicke. Toast is on a high-growth trajectory and was recently featured in the Globe and Mail.
7. Keyspan
Keyspan is a health optimization platform that empowers members with tailored wellness strategies based on their unique biochemistry. Merging advanced blood testing, personalized supplements, 1-on-1 coaching, and our dedicated app, it provides a holistic, evidence-based approach to health improvement. Founded on the principles of accuracy, simplicity, and scientific rigor, Keyspan is committed to helping people elevate their health, one day at a time.
6. Pacto Medical
Pacto Medical is a medtech startup that is founded by Ian Speers, Ryan Stinebaugh, and Robert Halvorsen. They has developed a patent-pending invention for a compact and resource-saving pre-filled syringe. We recently talked with the team about their innovation here.
5. Bidmii
Home renovation is the biggest challenge for homeowners. The online navigation of finding quality vetted contractors and service providers, while avoiding the scammers and fake reviews, is a big problem in this space. Bidmii has built the dream platform for homeowners and contractors, as it streamlines the process of bidding and paying for home improvement jobs, making life easier for both homeowners and contractors. The company was recently featured as number one in the Top 500 Companies in Collision in Toronto out of 1,500 startups.
4. Ecopia AI
This is one of the most successful bootstrapping companies based out of Toronto. Ecopia AI is creating a digital twin of the Earth using AI-based mapping systems, providing foundational information for critical decision-making and improving the welfare of societies, efficiency of economies, and health of environments.
3. Kinderdrop
Kinderdrop is a marketplace platform that connects parents with short term child care needs to licensed daycares with short term availability. It is striving to be the trusted source of information for making informed childcare decisions.
2. Chocolate Soup
Looking to celebrate a new milestone for an employee? ChocolateSoup helps you build an amazing company culture through recognition. Founded by Pj Lowe, Dan Silivestru, and Megan Hall, the platform offers subscription-based employee recognition plans and remote-team gift boxes that can be customized for your culture and team.
1. Contractor Compliance
Founded by Mark Bania and Jeremy Brown, Contractor Compliance was born out of the idea that there had to be a different way to manage third-party contractor compliance requirements. The platform simplifies the process for enterprise organizations to collect, manage and requalify third party requirements. Through automation, Contractor Compliance is able to reduce the administrative burden of managing this process by up to 70% within 2 weeks of partnering. Fully bootstrapped, Contractor Compliance has seen greater than 50% annual ARR growth throughout their history.
Know any great bootstrapping companies? Let us know for our next series coming up on the FoundersPress. For more updates see the startup newsletter here.
