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/

This entry was posted on Monday, May 4th, 2009 at 1:20 pm and is filed under Raising capital. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to Why bootstrapping matters

  1. When the economy gives you lemons, open a lemonade stand « UpStart Advisors says:
    May 11, 2009 at 4:18 pm

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

    Reply

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