Bootstrapped StartUps According to a software product think tank iSpirit 73% of the Indian software product companies are bootstrapped. When an entrepreneur uses personal finances or revenues to build a company and without any aid from venture capitalists then it’s called a bootstrapping a venture or a bootstrapped startup. Pros & Cons of Bootstrapping: Advantages: • More freedom to take quick decisions • Build the company at ones own pace and money • Become more customer focussed and efficient in business • Use time to build business than chasing investors Disadvantages: • Competitors with better financial standing can push bootstrapped firms out • Cannot scale as quickly as a funded company • Marketing and hiring talent is difficult • No access to mentoring and network of venture capitalists India’s famous bootstrapped companies: • Zoho • VWO • RateGain • BrowserStack • Kayako • Cosmic Circuits • FusionCharts • HappyFox • VoiceTree Technologies • ApnaStock • Media Ant • PowerStores Ecommerce • Exclusife • SignEasy • Inquirly Technologies • EmployWise Famous bootstrapped companies overseas: • Apple • Dell • Hewlett-Packard • Microsoft Some key statistical findings by iSpirit: • 51% of the entrepreneurs are between the age of 31 to 40 years • 70% start-ups treat SMB customers as strategic • 55% of the founders bring in the engineering expertise • 57% of the start-ups see average deal size of more than Rs. 50 lakhs • 73% of software product companies in India are bootstrapped
Posted on: Wed, 08 Oct 2014 11:06:43 +0000
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