‘How A Bootstrapped eCommerce Company Can Focus On Traction’ – Entrepreneur
Divyan Gupta says, “eCommerce and fundraising are the new buzzwords. Everyone seems to be wanting in on the action. The glowing press coverages, rock star status and proclamations of the new ‘Entrepreneur God’ has everyone wanting to turn to eCommerce and get funded. Many founders and entrepreneurs think that they only way they can create a successful business is by getting funded right from day one.
They forget that somewhere in the middle of all of that is the need to create a business. One that is sustainable and long lasting and not dependent on funding after funding. In a recent 2014 study, there were some startling observations around startups and funding. In the data generated by the Kauffman Foundation’s Firm Survey, one of the longest and largest studies ever of privately owned startups, researchers concluded that lower levels of startup capital don’t significantly alter a company’s chance of survival.
The study also revealed that almost every company in the Inc. 500 – the 500 fastest-growing companies with $2 million or more in revenue – used bootstrapping to get where they are now. Therefore even though it may seem like “everyone” is VC-funded these days, less than 1 percent of startups in the U.S. actually raise capital this way which implies that the vast majority are self-funded. Or as it is known, bootstrapped”.
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