In entrepreneurship, a company funded and owned by its founders without outside equity investment is commonly called a bootstrapped company.
Business bootstrapping means building an enterprise with personal savings, early customer revenue, reinvested profits, or other internal resources rather than selling ownership to outside equity investors. A bootstrapped founder may still use ordinary loans, trade credit, grants, or other financing, so the term does not necessarily mean the company has no debt.
Bootstrapping can preserve founder control and avoid dilution, but it may limit how quickly the company hires, develops products, or expands. Venture-backed companies typically exchange equity for capital and may receive investor networks and strategic support, while accepting dilution and governance obligations.
The word comes from the expression “pull oneself up by one’s bootstraps.” In business usage, it describes a financing approach, not a guarantee that the company is small, profitable, or independent forever.