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by Codelation

Dropping your own cash is a viable option to put towards funding your startup! Personal investment without outside help is coined as “bootstrapping”. While this does put financial strain on an entrepreneur upfront, it means that they don’t need to repay someone or lose equity for that amount.

What is Bootstrapping?

Bootstrapping is an approach to starting a business without external assistance. A founder brings their own wealth, savings, and time to the table to invest in their idea. There are no outside investors involved. Startups may bootstrap just an iteration or two of their idea or continuously bootstrap without external funding.

Bootstrapped Startups

Is bootstrapping really a viable option? There have been so many startups that have reached huge success with bootstrapped beginnings. eBay, Facebook, Dell Computers, Coca Cola, and Microsoft are just a few examples of big-name companies that started out with personal investment and a lot of hard work.

Are there Alternatives to Bootstrapping?

There are quite a few alternatives to bootstrapping your startup if you don’t have the funds yourself to get off the ground. Incubators, Accelerators, Angel Investors/Networks, Crowdfunding, Debt Funding, Corporate Seed Funds, and VC Funding are just a few of the other options available to founders.

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