Bootstrapping a business has some effects on getting institutional investment. A disclaimer here: I'm working from a pretty small sample size: my own experience, and my conversations with other entrepreneurs. Having said that, I think it boils down to a pretty simple concept. If you bootstrap your business, you will increase the probability of getting investment while simultaneously decreasing your valuation.
Early revenue does weird things to valuation. If you don't have any revenue at all, your valuation is based on the addressable market of your product and the executive team's experience and salesmanship. If you do have revenue, its easier to apply a formula. Since you are at the initial stages of an exponentially growing business, whatever historical formula you use is going to yield a pretty low valuation. Guess which ones the investors will use in valuing your company?
Overall, I highly recommend institutional investment. It has required me to learn new skills and improve myself. It has also given me the resources to implement the right strategy. It accelerates the growth of the business. I also highly recommend bootstrapping first. The goal of the first time entrepreneur is to maximize the probability of an exit. Bootstrapping -> Investment is a great track to take to get that first big exit. Even if that means it will be bigger for the investors than it will be for the entrepreneur.