It’s a common misconception that every startup needs venture capital funding or a high valuation to be successful on the stock market. While these factors can certainly help a startup achieve success, they are not always necessary.

One reason why startups may not need venture capital funding is that they may have a profitable business model that generates enough revenue to sustain the company’s growth. Bootstrapping, or funding a business with personal savings or revenue generated from the business itself, is a viable option for startups that can operate lean and generate revenue quickly.

Another reason why startups may not need a high valuation is that a high valuation can come with significant expectations and pressure from investors to achieve rapid growth. This pressure can lead to decisions that prioritize short-term growth over long-term sustainability, which can ultimately harm the business in the long run.

Successful startups that have gone public without venture capital funding or a high valuation include companies like Mailchimp, Basecamp, and Atlassian. These companies have grown slowly and steadily over time, focusing on profitability and customer satisfaction rather than rapid growth.

Ultimately, the success of a startup is determined by many factors beyond funding and valuation, including the quality of the product or service, the strength of the team, and the ability to execute on a well-defined strategy. While venture capital funding and a high valuation can certainly help a startup achieve success, they are not the only path to success, and many startups have proven that they can succeed without them.