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Bootstrapped Startup

A bootstrapped startup is a company that is started and operated without the need for significant outside funding. Instead, the founders of a bootstrapped startup use their own personal resources, such as savings or credit, to finance the initial stages of the business. They may also generate revenue through early customers or pre-orders to fund their growth.

Bootstrapping a startup has several advantages, such as:

  • The founders have complete control over their business and don't have to answer to outside investors.

  • They don't have to give up equity or control of the company in exchange for funding.

  • They can focus on building a sustainable business model that generates revenue instead of chasing funding.

  • They may be able to build a profitable and cash-flow positive business.

However, bootstrapping also has some limitations, such as:

  • The founders may have limited resources and may not be able to pursue all opportunities.

  • They may not have access to the same level of expertise, networks, and resources as a venture-backed startup.

  • They may have to forgo growth opportunities that require significant capital.

Bootstrapped startups can also be known as self-funded, self-sustaining, or "bootstrapped" companies.

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