Even when VCs beckon, some firms opt to bootstrap

It’s not every day that you find a company that can design and build a 3-D printer, which is why Marina Hatsopoulos has been in the cross hairs of so many venture capitalists over the past decade.

Hatsopoulos’ Burlington-based company, Z Corp., owns a patented technology that produces 3-D renderings for product and mechanical engineers, primarily within the automotive and aerospace industries. The 10-year-old business is growing like gangbusters, having booked $20 million in 2004 revenue and positive cash-flow since 2002.

And still the venture capitalists beckon, hoping to grab a piece of what has already become one of the area’s more dynamic and innovative success stories.

"I don’t want to bash VCs, because I do think there’s a need for them, but the pendulum has swung so far that they’re often seen as the only option," said Hatsopoulos, who co-founded the company after raising around $14 million from business contacts and angel investors.

And many of those options have nothing to do with what Bell calls the "three F’s" — family, friends and fools — willing to pony up small amounts of money with few strings attached. Indeed, Bell says businesses have a wealth of alternatives — customers, suppliers, angel investors — when it comes to securing significant cash under very reasonable conditions.

Craig M. Douglas
Journal Staff

Full Story: http://www.bizjournals.com/boston/stories/2005/02/21/focus4.html