Bootstrapping

Bootstrapping means building a business without external funding — relying on the founder's own capital and revenue generated by the business itself. Bootstrapped companies avoid dilution and maintain full control, but grow more slowly and face greater personal financial risk. Famous bootstrapped companies include Basecamp, Mailchimp (until its $12B acquisition), and GitHub (before raising VC). For many businesses, bootstrapping is the right path — particularly those in markets where slow, sustainable growth is viable. In the VC context, bootstrapping is relevant as a contrast: VCs only invest in companies pursuing hypergrowth strategies that require significant capital. Profitable bootstrapped businesses with modest growth are typically not VC candidates.