Bootstrapping describes building a company with personal funds or operating revenue instead of outside investment.
A bootstrapped founder may use savings, early customer payments or profits to finance development. The approach can preserve ownership and control because the company does not immediately issue shares to venture capitalists or other investors.
Bootstrapping does not necessarily mean that a company never raises money. Some founders bootstrap during the earliest stage and later accept angel or venture funding once the business has proven demand. The term therefore describes a financing approach, not a permanent legal category.
The word is borrowed from the phrase “pull oneself up by one’s bootstraps.” It is distinct from crowdfunding, which raises money from many contributors, and from an incubator, which is an organization that may provide support or resources.