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Creating the future of instant hiring. Do we raise capital or do we stay bootstrapped?

My business partner and I started autolance.co with huge ambitions - to create an instant hiring economy.

We know that the hiring process is broken. In a world where I can get groceries delivered to me within a day, a drug prescription through the phone in minutes, a fridge within a few days (unless it's home depot or there are like 162 delays), etc, it still takes 43 days on average to find a job during the job search. The median timeline is even higher.

Autolance wants to fix this and create an instant hiring platform. The idea is simplistic in thought but very complicated in nature, as we have experienced. We have started with freelancers by creating the best AI/ML hiring algorithms out there. The freelance hiring process Is very flexible and to prove our concept, this type of work is perfect. Plus, my partner and I have freelanced 5+ years each so it's in our wheelhouse. We create a place where highly pre-vetted freelancers are while most of the nitty-gritty of the hiring process is already done (reference checks, multiple interviews, technical checks, certifications/degree checks, and sample work checks. We then utilize data on a mask scale to give companies insane data points that we gathered during the pre-vetting process, including a pre-recorded video interview, giving companies the trust and resources to make instant hires.

We then match these companies looking for freelancers utilizing our data to these pre-vetted freelancers and the company chooses a freelancer(s) to hire and boom. They are hired. No wasted time, same benefits. The good news is our freelancers are freelancers-as-a-service as in they are paid via monthly, quarterly or annual subscriptions in exchange for a pre-specified service so it's easy to adjust as needed.

We believe we still have some things to improve upon but we are stuck at a crossroads on whether we go and raise capital to try and turn this into the new way to hire or we stay with the bootstrapped mentality we are so used to.

We know the latter is much less risky but what do you all think?

on July 7, 2021
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    Hey Joe,

    Been bootstrapping for over a decade now, so I am biased in my answer. We always believed that the further we could take the company without external capital, the better terms we'd got. And eventually became profitable and didn't look back.

    I think you need to ask yourself the following questions:

    • What do we need to do to get to ramen profitability? Can we get there on our own? So we can take the pressure off as in "I need money because I need to buy food" . This would bring more clarity in you decision making and probably better terms later on.
    • What would I do with the VC money? Would this be significantly different then bootstrapping it? You know what to do to supercharge the company with the additional capital?
    • From what I hear, raising capital takes time, are you ready and willing to spend the time?

    There are also alternative funds these days like tiny capital and calm fund which are marketing themselves as bootstrapper friendly funds. So maybe these are worth checking out.

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      Hey! Great idea! I have seen/heard about tiny capital and calm fund in podcasts and blogs. Maybe we can get the best of both worlds.

      We are technically semi at ramen profitability. We do not pay ourselves but my partner and I have agencies that more than pay the bills.

      I think I really want to stay bootstrapped but I think it does limit us. I think ROI-wise with outside capital, we can grow exponentially faster and larger the problem is the things that outside capital brings. I would have to be an investor's CEO and I don't think I would enjoy that.

      Thanks for your post!

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        Coincidentally I was just reading the book of Rand Fishkin (founder of Moz) and he talks quite extensively about VC funding in it and does a much better job at explaining why he wouldn't take VC funding anymore in his next company.
        The book is called Lost and Founder, I really recommend you read chapter 6 and 7.