# The game is rigged

Source: https://bootstrappingkiwi.substack.com/p/the-game-is-rigged

## Summary

The author argues that the crypto startup game is rigged against bootstrapped founders, whose products are not judged on merit and who are not mentioned in press coverage because they lack VC-backed credentials and social capital. The post says VC-funded startups look for different traits than bootstrapped businesses, which need to make money from day one, so enshittification is part of their plan from the start. It cites the author's eight years in crypto and startups and claims that a bootstrapped product with no VC deal goes unmentioned in blog posts about new startups. It also states that a16z's crypto startup school contract prohibits founders who receive funding from speaking badly about a16z.

## Article

Hi! “Bootstrapping Kiwi” is a new publication of mine. Here, I want to tell stories relevant to bootstrapping founders in crypto. Satoshi was a bootstrapper, but these days, there aren’t many like him anymore. So, with “Bootstrapping Kiwi,” I want to do my part and help future founders run a crypto consumer business solely funded by their work and funds. With that said, let’s jump right in!

It really is, but you and others might not be ready for this conversation. Sorry! You might not be able to have this conversation with me on a fair basis because you have taken on funding from a VC. And because to get this funding from that VC, you’ve signed contracts and NDAs. Didn’t you? How do I know this? I know this because the contract that grants entry to a16z’s crypto startup school actually mandates that you don’t talk bad about a16z once you’ve received funding. So much for free speech-loving Marc Andreessen!

For real, man, hardly ever is the crypto startup game ACTUALLY about merit and about who is shipping the best code and the best product. I can say this because I have been grinding my ass off for eight years now in the space and because I have pioneered the best products and research I can imagine. I have really high conviction here because I have gotten this feedback many times from others. People think my work is good - yet “good code” or “good product” still leads nowhere in the startup game. You can grind your ass off, publish ten blog posts a week - ship feature after feature, and self-pay for conference tickets - it won’t change anything because, truly the startup game is rigged. But why? And what is rigged about it?

Well, to be frank, some might say that I’m talking bs here and that the game is, in fact, not rigged - but that I’m not playing it the way I’m supposed to. Their argument’s baseline would be “You’re building a lifestyle company,” and “You’re not really earnest!” or “Would you dedicate ten years to this?”

Fact is, I have already spent eight years working in crypto and startups. Maybe not all the time as a founder, sometimes as a dev, other times as a freelancer - but I can tell you, I’ve always had the intention of founding from that first interview ever. I’ve been in this game for eight years already! So, would I dedicate ten years? Hell yeah! Been there done that.

But those people’s argument, those who say, “You’re building a lifestyle business,” their argument is really that as a founder, you’re supposed to take on VC funding and that you’re supposed to scale that thing super fast, hire employees, swing for the fences, raise more funds, find PMF etcetera. And I get that. That is a way of building a business that has a really clear path and really clear steps - it is low risk because you can pay yourself a salary, and you can work on stuff that profits your career and know-how. In that sense, if you had to choose between applying at McKinsey or a16z, why in the hell would you choose McKinsey when you “can be your own boss” by prestigiously founding a company and getting funded by Marc (who will become your boss then haha)?

In fact, really nothing against a16z or other VCs. They’re just out there doing their thing. The problem is, however, that they and others are rigging the game in a bad way for everyone else. What do I mean by that?

I mentioned in the beginning that the game is rigged and that despite performing like one of the best, you can’t win the game in the way that others win. But why is that? I think that’s because of the interest structures capital providers are creating. You can observe this fairly obviously when you start working at a bootstrapped company, and you’re working your ass off, and your product kinda works - but that then the entire spectacle simply happens without you. It’s when blog posts get written about these ten new hot startups in your space, and they even mention one or the other founder who pre-product, yet somehow they didn’t mention you, an entrepreneur with a fully functioning product but no associated venture capital deal.

See, I don’t blame them for this - I blame none of you. I acknowledge that every one of you who’s in to play the game knows how social capital works - and so the fact that the lonely bootstrapper isn’t mentioned anywhere isn’t because their product is low quality - it’s because they don’t have the credentials and bearing interest to be mentioned. That is because the VC-funded startup game isn’t about merit or who ships the best product. Like, yeah, of course, it is eventually; I’m not gonna deny that growing a VC-funded business isn’t about building utility. Yet, still, in terms of real software features and product sophistication, a VC-funded startup looks for different traits than a bootstrapped business.

A bootstrapped business is out for money from the start. Enshitification is obviously built-in and part of the plan. After all, when we’re bootstrapping, we’re actually not out to found a “lifestyle business.” We want to make money from day one. It therefore also drives me nuts when people suggest low-effort advice like, “Oh, just talk to your customers, and you will find what you can ship next!” Like really? How will talking to customers actually make money appear in my bank account? Look, again, I get what is meant here, and clearly, talking to users is a crucial component in negotiation about what my business is supposed to have on offer. But for us bootstrappers, what’s equally important is that we make money NOW! Look, we can’t raise seven rounds over a decade, “do everything the customer wants,” and then find out that our real-estate idea for coworking spaces in inner cities won’t work out economically (looking at you, WeWork). We have to make money today! And therefore, enshitification is part of the deal from the start.

But that is also why I think the game is rigged. I mean, from the perspective of a VC founder, it probably doesn’t look like it is rigged at all! They see all of these preconceived steps, their milestones their boss gave them, and so they’re like: “This is totally meritocratic! I just have to do X, Y, and Z, and then I will move on to another level!” But then I dare you to spend your hard-earned money just once on half a year of bootstrapping a company, and you’ll see how fucking hard it is to even get invited to a podcast or a shoutout on someone’s marketing blog. That is because they’re all cogs in a machine built for the modern VC industry where you’re supposed to collect credentials that make you worthy of receiving their funds and doing the prestigious things that make you appear to be successful.

It is in extremely stark contrast to putting down your own money and grinding every single day because you cannot afford employees or a better designer. Or because some asshole DDoSes your 6 DAU site at midnight (wtf, man!). The absolute insanity of 160 km/h capitalism, in this case of investing your own funds and bankrupting yourself on failure, won’t even allow you to spend much time thinking about where to collect the next credential. Instead, you’ll find gratitude and peace in being present with your loved ones, having to spend maybe an hour less that day thinking about how you’re going to make back this money you spent on yourself - a task you’ll absolutely obsess over. Elon Musk once said that building a company is like staring into the abyss and chewing glass, but what he really meant is bootstrapping a company! Because bootstrapping a company is so fucking hard, especially when the game is so fucking rigged!

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