I like to think of funded startups vs. bootstrapped web sites like the split between signed and unsigned bands.
Think about what a band has to do if they sign with a major label. They write music, perform/record it, and play it. Now think about people like Prince, Aimee Mann, etc. that do every single aspect of their music themselves. They have to create and record and distribute music, but also book tours and hotels and hire roadies and even oversee building websites. On the positive side, those going their own way talk about making more money from lower record sales than they did on a label, even though they do a significant amount of work.
So it’s a lot of work, but I would argue it’s totally appropriate for anything that isn’t a huge world-changing idea. And there are a lot of benefits that come from it.
Matt Haughey — My Webstock Talk: Lessons from a 40 year old (now with transcript).