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329 Why Early-Stage Founders Are Opting to ‘Seed-Strap’ Their Startups

The Information
Natasha Mascarenhas @ The Information · 02/13/2025 19:04 EDT

Artificial intelligence startups such as coding assistant Cursor and legal AI software-maker Harvey have become fundraising beasts, raising hundreds of millions of dollars in rounds just months apart. But some founders are bucking that trend, instead opting to “seed-strap” their businesses, using revenue to expand operations after an initial round of venture capital. This approach appeals to entrepreneurs who don’t want to cede much control to outside investors and are focused on becoming profitable rather.

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