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Boostrapping WMR

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This is a presentation on Bootstrapping that addresses some of the key issues that are either poorly understood or not understood at all.

This is a presentation on Bootstrapping that addresses some of the key issues that are either poorly understood or not understood at all.

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Boostrapping WMR Boostrapping WMR Presentation Transcript

  • Sramana Mitra
    Bootstrapping, Weapon Of Mass Reconstruction
  • 30 m people unemployed
    US deeply in debt – through 2019, avg. deficit $1 Trillion+ a year
    Credit crunch
    Venture capital industry imploding
    Obama more interested in healthcare reform than job creation
    Jobless recovery on the wings of speculation
    Where we are
  • “I am not a pessimist” -
    NourielRoubini
    (Dr. Doom)
  • We need 3 million entrepreneurs
    To create 30 million jobs
  • Why?
    Small portion of business ideas qualify for VCs
  • TAM = Total Available Market
    VC = Large TAM
    VCs only fund very large market opportunities
  • Worth Building, though
    Especially if you own 100%
    Many more $1m, $5m, $10m, $20m ideas than $500m ones
  • 90% owner of $5m company sold for $25m
    Which entrepreneur makes more $$$?
    5% owner of $25m company sold for $100m
    $22.5m
    $5m
  • Weapon Of Mass Reconstruction
    Hence, Bootstrapping
    • Personal Entrepreneurship Fund
    Like 401 (k) savings with tax incentive
    • Waive or defer college loans
    • Visa for immigrant entrepreneurs
    Policy
  • Yes you can.
    Myth: You cannot build a large company by bootstrapping
  • Finisar: Bootstrapping To Billions [EJ1] - $5b market cap in 2001
    RightNow: The Montana Mogul [EJ2] - $500m market cap in 2009
    SuccessFactors: Silicon Lazarus [EJ2] - $875m market cap in 2009
    Stories
  • On the contrary.
    Bootstrap the early stage.
    Raise money later.
    Preserve more equity.
    Myth: Bootstrapping & Venture Capital are mutually exclusive
  • Don’t build anything until you have validated your concept.
    Myth: Need to build a prototype to start selling.
  • Avoid very large funds.
    Bootstrap first.
    Mentor Capital, not Venture Capital
  • Bootstrap a venture.
    If you have been laid off, create your own job.
  • Book raffle
    Q&A
  • All Books on Amazon
    Entrepreneur Journeys (Volume One)
    Bootstrapping, Weapon of Mass Reconstruction (EJ2)
    Positioning, How To Test, Validate, And Bring Your Idea To Market (EJ3)
    Also, free online strategy roundtables for entrepreneurs
    Next: Jan 14, 21, 28
    Resources
  • www.sramanamitra.com