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Employee commitment in bootstrapped versus externally funded companies (Part 1)

Filed in archive Entrepreneurship by Shawn Hessinger on April 22, 2007

Employee commitment in bootstrapped versus externally funded companies (Part 1)
Link: Cristian Dorobantescu

CONTINUED FROM PREVIOUS POST

During my 5 years working in software companies I got the chance to work on both self-funded (and bootstrapped) and external funded companies.

I'm not going to make some definitions of self-funded versus external funded by the book, but to make sure we have the same understanding of the things I would say that:

• a self-funded company (bootstrapped) is a company that grows based on the resources it has generated previously

• an externally funded company relies on supplemental resources offered by the shareholders, venture capitalistlinks or any other entity.

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