The one method of financing a startup that has the highest risk, and therefore highest potential return for the entrepreneur is the bootstrap. The concept of bootstrapping is simple enough, just take your own resources, put them into the business, then re-invest any profit that is generated, rinse, and repeat. The devil is, of course, [...]
Most startups are founded with money from the entrepreneur’s family, friends, or significant others. This round of funding is commonly referred to as the “Friends and Family” round (although some professional investors change it to “Friends, Family, and Fools” to reflect the lack of sophistication most seed-stage investors have). The Friends and Family (”F&F”) round [...]
