Entrepreneurs must decide early on how they will fund their new business ideas. It’s a critical decision that echoes throughout the life of the business in very profound ways. Whether you turn to investors, or go it alone, the decision will determine not only what capital you have to build your business, but the control, constraints, and the type of returns you need to generate.
As a web entrepreneur, my field is filled with stories about venture capital, private equity and angel investments. In fact, if you read the tech press, you could think that this is the only way to build a successful online company. But it’s not. I advocate that more entrepreneurs should take a different approach. One that involves not venture capital, but what I call boot capital, a nod to the well known term, “bootstrapping.”
To read the original article: Venture Capital vs. Boot Capital | Alister & Paine
