Bootstrapping

What Is Bootstrapping?

Bootstrapping means building a company using your own resources, without external funding, like angel investors or venture capitalists etc. Think of it as being your own investor! 💪

What bootstrappers typically use:

• Personal savings
• Cash flow from sales
• Credit cards
• Friends & family loans
• Side gig income

👆 By the way, an interesting fact: The term “bootstrapping” comes from the phrase “pulling yourself up by your bootstraps” – originally meant to describe an impossible task, but became a symbol of self-reliance.

Bootstrapping Pros and Cons

Pros 📈

• Complete ownership control
• No equity dilution
• Flexible decision-making
• Focus on profitability early
• Build sustainable habits
• No investor pressure

Cons 📉

• Slower growth potential
• Limited resources
• Personal financial risk
• Competitive disadvantage
• Work-life balance challenges
• Limited network access

Examples of Bootstrapping Success Stories

• Mailchimp
  • Started as a side project
  • Sold to Intuit for $12B in 2021
  • Never took outside funding
• GitHub
  • Bootstrapped first 4 years
  • Profitable before first investment
  • Sold to Microsoft for $7.5B