In 2025, VC Funding Declines as Bootstrapped Solo Founders Rise
A striking trend is emerging in 2025: venture capital funding is losing its luster, while bootstrapped solo founders are gaining momentum. This shift was highlighted by a graphic shared recently by Peter Walker from Carta, sparking discussions about the changing landscape of entrepreneurship.
Industry insiders and founders alike confirm the trend. Many entrepreneurs, particularly those with prior experience in raising venture capital, are opting to bootstrap their ventures instead.
What’s driving this change? Here are a few key factors:
Increased Awareness of VC Trade-offs
Founders are becoming more aware of the significant compromises involved in accepting venture capital, such as ceding control, dealing with unrealistic growth expectations, and enduring relentless pressure to scale. For many, these challenges no longer feel worth the trade-off.
Technological Advancements Lower Barriers
With the rise of AI, no-code tools, and automation platforms, building scalable products has never been easier. Entrepreneurs no longer need a technical co-founder or significant upfront investment to create competitive products. As Sam Altman has predicted, the first one-person startup to reach a $1 billion valuation could be just around the corner.
A Shift in Values
Founders are increasingly prioritizing flexibility, independence, and freedom—qualities that bootstrapping affords. Growing a business on their own terms, working remotely, and choosing collaborators freely have become more appealing than chasing VC funding. Profitability, once overshadowed by growth-at-all-costs models, is making a comeback as a key metric of success.
This shift marks a significant departure from the VC-driven narrative that dominated the last decade. While there are still systemic barriers preventing some groups, such as female founders, from accessing venture capital, the rise of bootstrapping may offer a more equitable and appealing alternative for many.
The big question remains:
Is this the dawn of the bootstrapped solo founder era? And if so, will this trend reshape the startup ecosystem for the long term?