Every startup is built on a foundation of brilliant ideas and financial strategy. It’s intimidating to take the leap, especially when you know that it is the most important decision an entrepreneur will ever make. It’s now or not! This decision also sets the foundation for a company’s future by defining its trajectory and its very essence.

Money doesn’t just appear on the tree. When launching a business, it is important to consider your funding source. venture funding is a popular option for startups, as it promises rapid expansion and seemingly unlimited resources. This route often comes with a hidden price: the loss of control you have over your corporate culture and vision.

bootstrapping or obtaining external finance before a long-term vision is important for entrepreneurs who value autonomy, cultural unity and long-term vision. This strategy allows founders to build their company on a solid basis: a core set values and a clearly-defined objective.

Related: 10 Tips for Bootstrapping Your Startup

Bootstrapping has many advantages

bootstrapping has the advantage of not having to deal with investors. Venture capital funding can come with a hidden price for many startups: short-term pressures. Venture capitalists can be valuable partners, but they tend to prioritize metrics such as immediate profitability. This may not align with a company’s long-term objectives. This often leads to sacrificing strategic investments such as brand building, R&D or social responsibility programs which contribute to a company’s success in the long-term.

Bootstrapped companies, free of external influence, can make decisions based on their core values and mission. This ensures that decisions about resource allocation, strategic partnerships, and product development are guided by the strategic vision, rather than the next quarterly report.

It is important to note, however, that bootstrapping doesn’t imply isolation. To get started, the team must have an open exchange of ideas that will drive different perspectives. A healthy internal debate, for example, could reveal a lucrative market opportunity. A competitor’s strategy may require a change in tactics. These discussions are always filtered through the lense of the company’s core objective to ensure that every decision is aligned with its guiding principles.

This method, although slower, fosters a greater sense of pride and ownership within the team. This leads to a more lasting and impactful brand experience.

Related: Bootstrapping or Venture Capital — Which is best for your business?

Venture capital funding has many advantages

It can be difficult to build a brand. Venture capital (VC), which provides significant capital to companies, can be a powerful accelerator. VC funding can be a great springboard to help businesses scale quickly.

The influx of capital provided by VCs allows businesses to invest heavily in R&D campaigns, marketing campaigns, or team expansion. These investments help the company grow rapidly and establish it as a leader in its market.

VC firms offer access to a vast network of professionals with experience in the industry. Startups can use this opportunity to create partnerships, open up lucrative distribution channels, and accelerate their company’s learning curve.

Many VC firms offer more than just financial support. They offer mentorship and leverage their years of expertise to help startups make informed choices. Securing VC funding is a powerful validation. It means that they believe your company has a chance of success in the future. This external validation can increase brand credibility among customers and attract more investment opportunities.

You should also remember that VC firms are not only interested in the success of your business, but they also have exit strategies in place. The risk and reward structure is, however, shared. Venture capitalists are your partners in the journey. Their profits are dependent on the growth of the company, which in turn actively supports the overall success of the company.

Related: My startup couldn’t raise VC funding, so we became profitable. Here’s What We Did — and How You Can Do It Too.

The right path for a committed entrepreneur

Whether you choose to fund your startup through VC or bootstrapping the initial decision will determine the trajectory of your company. Each primary funding option caters to a different set of goals and tolerance for risk, so understanding both VC and bootstrapping can empower you to choose a funding route that aligns with your vision and goals.

Not all companies want the same path to achieve success. Bootstrapping is ideal for entrepreneurs who value control and culture based on core values. It revolves around resourcefulness and resilience, as well as a deep commitment towards their vision.

Bootstrapping requires patience and a longer-term view. VC funding is the best option for entrepreneurs who are looking to scale quickly and have significant resources. VC firms provide access to capital and industry networks as well as mentorship. This can propel a company towards dominance in the market. VC funding does, however, require some control to be relinquished. Founders need to be prepared for collaboration, and possible adjustments in order to achieve shared goals.

The “ideal” path to a startup is the one which best suits your business’s needs. The road to entrepreneurship is often bumpy. However, carefully weighing your options can help you develop a strategy that will shape the future of your business.