Why bootstrapping matters

Why should you care about bootstrapping? The vast majority of new businesses are financed via bootstrapping, not from angel investments[1] or venture capital funding[2]. In fact only about 3% of companies that seek angel funding actually land investments[3], and the odds are even tougher for companies seeking venture capital.

companies-funded

 

 

 

 

 

 

 

 

 


[1] http://www.angelcapitaleducation.org/dir_resources/for_entrepreneurs.aspx

[2] https://www.pwcmoneytree.com/MTPublic/ns/moneytree/filesource/exhibits/MoneyTree%20-%20Q2%202008%20final.pdf – Startup, Seed and Early Stage investments.

[3] http://angelsoft.net/industry/

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One Response to Why bootstrapping matters

  1. […] distribution deals, land some paying customers…). That’s the way it should be. See my post on boostrapping for […]

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