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Concepts›Strategy and Niche›Bootstrapping vs venture funding

Concept 17 of 20

framework

Bootstrapping vs venture funding

Slow and yours, or fast and partly someone else's.

Definition

Two contrasting paths to fund a startup: bootstrapping uses revenue and personal capital, venture funding trades equity for outside cash and growth pressure.

Step 1

Predict first

In one or two sentences, what do you think this concept means? Wrong is fine; the small struggle is what makes the answer stick.

Two-sided markets Fundraising stages