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Venture Capital vs. Bootstrapping



Another way for a start-up to avoid outside financial involvement is self-finance, also known as “bootstrapping." Bootstrapping” refers to the entrepreneur on a small scale economically beginning operations and better demonstrate demand for the technology and/or market potential for its product or services.



Once revenue comes in, such a start-up business will be in a much better position with a far more credible case to ask for money from venture capitalists or angel investors.

Companies that bootstrap may often supplement income by doing external consulting or client work to make money while their product is being built.