Bootstrapping

An alternative to funding
Author : Eva hukshorn, partner EFactor
1. EFactor is a Smart Network that matches entrepreneurs with the very people
who can help them grow
2. Finding Business Partners: from partners to investors, from coaches to
customers
3. Largest Entrepreneurial Network in the World with 1mio members in 185
countries.
4. An online community Offering you a network, knowledge, events, and every
business resources you need to succeed @ discount!
5. GO Online, fix your personal profile & company profile and get MATCHED!

Some Basic Ingredients To Start a Successful Company
An average idea takes 9 - 12month from creation to business plan.
Most successful start-ups consist of 3 partners
You start with money. You end with money. And then there is money in between.
Typical life cycle of a High Content Growth Startup
IDEA PROTO TYPE LAUNCH GROWTH
HIGH
RISK






LOW
RISK
PRE - SEED
SEED
EARLY & LATER-STAGE/ GROWTH
IPO/ EXIT
CAPITAL DEFINITIONS
An Overview of Funding Providers Active in Each of the Stages
PRE-SEED & SEED
CAPITAL
USD 0 1.5 mio
Friend Family &
Fools
Grant Funding
University Loan
Angel Investors
Crowdfunding
Bootstapping
Competitions
Incubators
EARLY & LATER STAGE /
GROWTH CAPITAL
USD 1 20 mio
(Syndicate of) Angel
investors
Venture Capital
Private Equity
Commercial Bank


IPO /
EXIT
USD 25mio +
Venture Capital
Private Equity
Commercial Banks
Hedge Funds
Public Market /
Stock Exchange


HIGH RISK LOW RISK
What Kind of Funding do These Funding Providers Give?
1. Debt/Loan
Funding external parties
without ownership + fee:
Personal Loan
Bank Loan
Convertible debt
Mortgages
Et cetera
2. Equity
Funding external parties
without ownership :
Common
Preferred
Mezzanine


3. Debt/Loan
Funding through own
resources
Income
Savings
Revenue


Friends, Family & Fools
Angel Investors
Peer 2 Peer Crowd
funding
Commercial Banks
Friends, Family & Fools
Incubators
Equity-Based
Crowdfunding
Angel Investors
Venture Capital
Private Equity
Income & Savings
Revenue
Friends, Family & Fools
Pre-Sale/ Donation
Crowdfunding
Grant Funding
University Funds
Competitions
So Why Bootstrap?
85% of ideas do not start-up.
50% of the startups are not alive after 5 years
On average it takes 3.8x companies to be successful
Less then 10% of the startups get funded with equity:
0.03% venture capital / 2% by informal investors
It takes 1.5 years, 32 versions of your business plan and speaking to 20
investors at least 3 times.
65% of entrepreneurs have personal loans
55% of startups with Angel Funding will get Venture Capital Funding compared to
10% with no Angel Funding will get Venture Capital Funding.
1 to 100 companies having a meeting with Venture Capital gets funded.

Bootstrapping : What is It?
Achieving as much as possible with
as little money as possible
1. Funding from own funds & FFF.
2. Organic growth through revenue.
3. Business type: services / consulting
4. Lean & Mean
5. Delays in Development

Bootstrapping : Why do It?
1. Creating Value
2. Knowledge and asset ownership remains internal
3. Reducing risk
4. Remain in the drivers seat
5. How many options do you think you have?
BOOTSTRAPPING - CASE STUDY
SYMBID:DUTCH EQUITY BASED CROWDFUNDING PLATFORM
Total Value Platform Eur 2.046.000
USD 2.7 mio
Cash Out Symbid Eur 176.000
USD 239k
Total Bootstrapping Profit Eur 1.864.00
USD 2.4 mio
BOOTSTRAPPING - CASE STUDY
SYMBID:DUTCH EQUITY BASED CROWDFUNDING PLATFORM
PARTNER WHAT VALUE SYMBID PAID:
Accountant 500 hours of advice (280 EUR/hour) EUR 140.000 EUR0
Lawyer 175 hours of advice (280 EUR/hour) EUR 50.000 EUR 20.000
Technology Shareholder
India mockup on western Standards
EUR 250.000 EUR 150.000
Marketing Affiliate Model, Social Media, Free
Publicity
EUR 500.000 EUR 5.000
Team No Salary EUR 600.000 EUR 0
Advisors
Investors
Celebrities + Specialists @ discount if
next investor at higher price
EUR 500.000 EUR 1.000
(2 dinners)
BOOTSTRAPPING - CASE STUDY
SYMBID:DUTCH EQUITY BASED CROWDFUNDING PLATFORM
Total Value Platform Eur 2.046.000
USD 2.7 mio
Cash Out Symbid Eur 176.000
USD 239k
Total Bootstrapping Profit Eur 1.864.00
USD 2.4 mio
Bootstrapping : Why do It?
1. Preparation is the key
2. Solid business model
3. Account smart
4. No cash out flow unless necessary 8
7
6
5
Low hanging fruits first
Leverage yourself
Leverage everything you know
Everyone & everything is marketing
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This document was prepared by Eva Hukshorn. Several people and organizations have
inspired her to write this presentation, amongst which are, but not limited to the Founders of
EFactor, ABN AMRO/RBS, University of Groningen, Institute for Management Accountants,
Paul Grant Founder of the Funding Game
Thank You!