Bootstrapping vs. Venture Capital

Business - B1-B2 | Intermediate Level

8 $

Feb. 20 Fri , 03:00 USA

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Description

In this session, we will explore the difference between bootstrapping and venture capital as ways to fund a business. You will learn how each funding method works, the advantages and disadvantages of both options, and when each strategy might be appropriate. We will also discuss real-life situations where entrepreneurs must decide between keeping full control of their company or accepting outside investment to grow faster. By the end of this session, you will feel more confident discussing business funding strategies and giving your opinion about them.

Session Activities

1: What is more important: control or fast success?

2: Would you feel comfortable sharing ownership of your company?

3: If someone offered you money for your idea, what would you consider before accepting?

1: Your product is growing slowly but steadily without outside funding. Would you keep bootstrapping or raise capital to grow faster?

2: A big competitor is expanding quickly with VC funding. Would you take investment to compete, or grow slowly but independently?

3: Your company could “scale up” rapidly, but it requires giving up decision-making power. Is it worth it?

4: Your burn rate is high, and profits are not coming soon. Do you continue bootstrapping or seek VC?

5: Your co-founder wants venture capital, but you prefer bootstrapping. How would you resolve this conflict?

6: If your business fails, would you rather lose your own money or investors’ money? Why?

7: Your company is doing well bootstrapping. Investors approach you — do you say yes just because you can?

Angel Investor

An individual who invests personal money in startups.

Seed Funding

Early-stage investment to start a business.

Equity

Ownership share in a company.

Scalability

Ability of a business to grow quickly without increasing costs too much.