What is Bootstrapping?

Bootstrapping is a means of financing a small firm through highly creative acquisition and use of resources without raising equity from traditional sources or borrowing money from a bank. In short, "bootstrapping" means starting a new business without start-up capital. It is characterized by high reliance on any internally generated retained earnings, credit cards, second mortgages, and customer advances, to name but a few sources.

Why Bootstrapping?

Bootstrapping is the most likely source of initial equity for more than 90% of technology based firms. Venture capitalists are rarely able to fund small start-up firms (in US, seeking lees than $5 million), regardless of the quality of the venture, because of their very specific investment criteria and high costs of due diligence, negotiating, and monitoring. Bootstrapping offers many advantages for entrepreneurs and is probably the best method to get an entrepreneurial firm operating and well positioned to seek equity capital from outside investors at a later time.

Bootstrapping Options...

Strategies for Successful Bootstrapping...

Bootstrapping Options for Product Development...

Bootstrapping Options for Business Development...

Bootstrapping Options to Minimize the Need for Capital...

Bootstrapping Options to Meet the Need for Capital...

Alternative Financing: VC Is Not The Only Way...