- October 1, 2021
- Posted by: Stratford Team
- Category: Business
Many owners of brand new small businesses and startups have trouble raising capital during the early days—or don’t want to turn to outside investors, so they can hold onto the equity as long as they can.
Some never raise capital. They instead fund growth through cash flow, a process known as bootstrapping. In recent years, we’ve even seen bootstrapped “unicorns” – companies with a $1 billion valuation that got there through self-financing, rather than hitting the venture capital circuit.
There’s a fine, intuitive art to bootstrapping. Many investors gravitate to companies that do it successfully. “We find the CEOs are very strong operators,” says venture capitalist Christopher Yip, partner and managing director of Real Estate Technology (RET) Ventures in San Francisco. “They have that entrepreneurial spirit and vision of what a business can become. The execution is very strong.”
Lucas Rotter, CEO and founder…