Whole Network bootstrap music Bootstrapper Ne... Bootstrapper Ti... Entrepreneurshi... How-to Tools

 

Bootstrap first then VC finance

Filed in archive Bootstrapper Tips by Shawn Hessinger on November 10, 2007

Bootstrap first then VC finance

An article last week in the Toronto Gazette reinforced an idea that commonly comes up in conversations on bootstrapping.

In Canada as here in the States, it's better to bootstrap to get your business up and running and then later look for Venture Capital or other outside funding once you've got some sales and a working business model under your belt.

Whatever gripes young business pioneers have about VCs, Angela Burlton, a professor of entrepreneurial studies at McGill Universitylinks, wants them to know it's all optional.


"People think they need VCs to start a business. They don't," she said.


Instead, Burlton tells entrepreneurs they'd be better off bootstrapping it until they start making some sales. Then when they approach VCs for growth money, they won't have to give up a majority stake.


James Hong of Hotornot.com explains how he and brother Jim founded their company using lots of creative means to get around their lack of financial backing.

The Gazette article suggests:

Early seed money is also hard to come by, as VCs normally turn their noses up at deals below $1 million.


And fellow bootstrapper and blogger Ben Yoskovitz of the Instigator Blog told the paper:

They all say they want to get into early stage financing, but few are actually doing it.


If you've got a great business idea consider how you might bootstrap it first without any outside funding. If you do decide to get outside investors in the future, it will be much easier to persuade them with a record of revenue and a working business to show off.







Permalink: Bootstrap first then VC finance
Tags: bootstrap  business  bootstrapping  startup  entrepreneur  economy  tips  advice  thoughts  money  finance  Tor 

Trackback: http://www.creative-weblogging.com/cgi-bin/mt-tb.pl/101278





RSSrss   | See all blog subscribe options
Google google   |   What is RSS?
Yahoo! yahoo
Addthis Subscribe using any feed reader!
Bloglines Bloglines
Newsletter
Grouptivity

Use the search to look for other interesting posts



 
  • Advertise with us

  • Learn more about our advertising options or email advertising - at - creative-weblogging.com or give us a call at +1 (650) 331 4900.




  • Other blogs in the same channel in the Creative Weblogging Network







 

Tagcloud: Bootstrap Interviews bootstrap music Bootstrapper News Bootstrapper Profile Bootstrapper Resources Bootstrapper Tips Bootstrapper Tools Bootstrapping Opportunities Bootstrapping Thoughts Bootstrapping Trends Entrepreneurship equipment exchange Events How-to Just For Fun Philosophy services Sponsored Post Tools