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Lesson 14 - Discussion

Lesson 14 - Discussion

Q Bootstrapping is a critical part of a new venture strategy because, at the earliest stages of the venture, it is difficult to raise capital from outside investors or debt-financing sources. What does that statement mean to you? Provide examples from any venture that you are familiar with.

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It is important for every new business owner to ensure that there can be speculative and estimated values calculated. This can be possible by the method of bootstrapping. While using this technique, there cannot be gaining of estimated values without calculating of required capital by managers and owner of an organization (Jayawarna et al., 2020). When there is a new venture initiated, the new venture is not recognized by investors. Moreover, the prospects of a new venture cannot be fathomed unless the venture is started and runs at profits for some time. Most investors might not want to take risks to invest in a new venture because of already having invested in some other existing organization (Jayawarna et al., 2020).