Which term refers to starting a company with personal funds and resources instead of seeking outside investment?

Which term refers to starting a company with personal funds and resources instead of seeking outside investment?

• A. Bootstrapping
• B. Venture Capital
• C. Angel Investing
• D. Crowdfunding

Answer: (A)

Bootstrapping means starting a company with your own money and existing resources rather than seeking outside funding. This approach keeps you in full control of the business and ensures you don’t give up equity or take on investor expectations early. It also forces careful cash management and a focus on generating revenue from the start, since growth comes from profits or reinvested cash rather than external capital. The trade-off is slower growth and higher personal risk, but you maintain ownership and decision-making freedom. External funding options like venture capital, angel investing, or crowdfunding involve other people’s money and typically involve sharing ownership or different growth dynamics.

Bootstrapping means starting a company with your own money and existing resources rather than seeking outside funding. This approach keeps you in full control of the business and ensures you don’t give up equity or take on investor expectations early. It also forces careful cash management and a focus on generating revenue from the start, since growth comes from profits or reinvested cash rather than external capital. The trade-off is slower growth and higher personal risk, but you maintain ownership and decision-making freedom. External funding options like venture capital, angel investing, or crowdfunding involve other people’s money and typically involve sharing ownership or different growth dynamics.