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Also known as self-capitalization, this is how most start-ups actually capitalize themselves. Sources of bootstrap capital include: soft capital (Mom/Dad/Rich Uncle Buck), home equity loans, supplier credit, consulting, credit cards, retainers, deposits, progress payments, receivables factoring, partners, sponsorships, guarantors, pre-sales, launch clients and more. Bootstrap capital allows the ownership to keep control of their own enterprises and not lose them to VCs and other debt or equity holders.
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