Bootstrapping (Self-funding)

Bootstrapping means starting a business without getting outside investment. It is a mode of self-funding with no external source of funding.

Advantages of bootstrapping:

• No dilution of equity.
• No burden of repayment.

Disadvantages of bootstrapping:

• Can raise a very limited amount of funds.
• Increased strain on personal finances.
• Difficult to scale operations leading to slower growth.
• Restricts the access to guidance from experienced investors.