GLOSSARY
Bootstrapping
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Bootstrapping is the practice of starting and growing a business without external funding or investment.
What is Bootstrapping?
Bootstrapping means building your startup without relying on external financing. This can include using personal savings, revenue from initial sales, or reinvesting profits back into the business.
Why It Matters
Bootstrapping gives you full control over your business, helps you maintain equity, and fosters resourcefulness and creativity in problem-solving.
Examples of Bootstrapped Startups
- Basecamp: The project management software was built by its founders without external funding.
- Mail: The email marketing platform started as a side project and grew without outside investment.
Related Concepts
Bootstrapping is often contrasted with venture capital funding, angel investment, and crowdfunding as alternative ways to finance a startup.