As venture capital funding tightens, more startup founders are turning to “seed-strapping” – raising a single round of funding and scaling profitably from there. Unlike traditional venture-backed startups that rely on multiple funding rounds, seed-strapping allows founders to maintain control while leveraging revenue growth and operational efficiencies. Companies like Zapier and StackCommerce have successfully followed this model, proving that profitable growth without ongoing venture investment is possible.

AI is playing a significant role in this shift, helping startups streamline operations and reduce costs, minimizing the need for large teams and excessive capital. The trend is particularly noticeable in Southeast Asia, where market fragmentation makes traditional VC funding models less effective. As founders increasingly prioritize sustainable growth, control, and long-term viability, seed-strapping is emerging as a compelling alternative to the traditional venture capital path.