Bootstrapping Methods: Non-external Financing Strategies Applied by Start-ups


 
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Bootstrapping Methods: Non-external Financing Strategies Applied by Start-ups
Paula Kokare, Premium Member
In the light of vast difficulties that start-ups face while acquiring external funds, new ventures can increase their chances of survivorship by implementing various alternative approaches to acquire necessary financing. The set of methods applied by businesses to generate necessary funding without reaching out for external long term financing is defined as "Bootstrapping" (Windborg and Landstrom, 2001).
The authors Windborg and Landstrom (2001), who performed comprehensive research in the field of bootstrapping, have identified the following six types of bootstrapping methods that new ventures apply to meet their financing needs:
 

 
 

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