What is bootstrapping and how can I bootstrap my startup?

Adeo Ressi / November, 2017

Description

Adeo Ressi, founder and CEO of the Founder Institute explains what bootstrapping is and how it works.

Video transcript

What is bootstrapping and how can I bootstrap my startup?

Bootstrapping is the desire of a founder to fund the operations of their company with a combination of their own resources and revenues from the business. So when you bootstrap a company you do not rely on investors to fund the operations of the business. So the real question is do you continue to bootstrap the business further and further and further, possibly all the way until you sell the company many years later.

What I would say is this, there’s a very easy way to think about it. If you believe that you can take some money, accelerate success and growth dramatically to the point where you will be the undisputed market leader and being the undisputed market leader in a faster period of time put you in a position to capture an enormous wealth, then you should pursue investment aggressively. If you believe conversely, that you can build a lasting and large and meaningful company without investment, growing at a nice pace, then you don’t need to take investment, you can essentially bootstrap the business.

The Founder Institute is a bootstrap business, we’re doubling every year. We are in 125 cities around the world and we are ten times larger than the next largest incubator-accelerator, and I knew that I could do that without taking investment capital. Investment capital was an unnecessary headache if you will in order to achieve my objective. So it really depends on the business and your objectives, but keep in mind taking investors comes with a lot of compromises so if you can avoid it, choose to bootstrap.

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