The reason for bootstrapping iGoMoon
In today's episode, Mattias explains why borrowing money was never an option for him when he started his company and under which circumstances he could see himself actually seeking financial support.
Why Mattias chose bootstrapping
Mattias decided to bootstrap his company iGoMoon and not accept any external financial support because he did not want to give away any future profits. He adds that his goal was to monetize his patience and skills, which was and still is the essential fuel when growing his company.
He explains that he's a competitive person and comes from a sports background - which influenced his ambition to build iGoMoon from scratch. However, as a sportsman, you also learn that you can't always win, and you sometimes need to take a punch.
Scaling down personal life to scale up the business
Another reason for his decision to organically grow his company was that he wanted to monetize his business. Then, later on, when all the work has paid off, he might invest the money he's made to invest in other business ventures.
Mattias clarifies that even though he technically never borrowed money from anyone else, he did borrow a lot of money from himself. When he was 33, he sold his apartment and most of his belongings to gather the seed capital to start iGoMoon. He scaled down his personal life in order to scale up his company.
Long-term goals with the business
Even though he chose to bootstrap his company, he is not strictly against borrowing money or finding investors. It depends a lot on what kind of company you are trying to build and what business model you have in mind.
He could even see himself bringing in an investment firm at a later point when iGoMoon has become
even bigger. His goal would be to achieve more personal financial freedom since iGoMoon's balance sheet equals his balance sheet.
💡 EPISODE TAKE AWAY
Borrowing money to build a business is not always a negative thing. It depends a lot on what kind of company you are trying to build and what business model you have in mind.
What is your take on external funding? Let us know if you want to hear more about why Mattias chose to bootstrap iGoMoon.
ABOUT THE AUTHOR
She is the woman behind and in front of the camera. Svea is multi-talented and lets her skills shine while she both shoots and hosts the inspiring YouTube series with iGoMoon's founder Mattias Gronborg.