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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.

Published in: Business, Economy & Finance
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Boostrapping WMR

  1. Sramana Mitra<br />Bootstrapping, Weapon Of Mass Reconstruction<br />
  2. 30 m people unemployed<br />US deeply in debt – through 2019, avg. deficit $1 Trillion+ a year<br />Credit crunch<br />Venture capital industry imploding<br />Obama more interested in healthcare reform than job creation<br />Jobless recovery on the wings of speculation<br />Where we are<br />
  3. “I am not a pessimist” -<br />NourielRoubini<br /> (Dr. Doom)<br />
  4. We need 3 million entrepreneurs<br />To create 30 million jobs<br />
  5. Why?<br />Small portion of business ideas qualify for VCs <br />
  6. TAM = Total Available Market<br />VC = Large TAM<br />VCs only fund very large market opportunities<br />
  7. Worth Building, though<br />Especially if you own 100%<br />Many more $1m, $5m, $10m, $20m ideas than $500m ones<br />
  8. 90% owner of $5m company sold for $25m<br />Which entrepreneur makes more $$$?<br />5% owner of $25m company sold for $100m<br />$22.5m<br />$5m<br />
  9. Weapon Of Mass Reconstruction<br />Hence, Bootstrapping<br />
  10. <ul><li>Personal Entrepreneurship Fund </li></ul>Like 401 (k) savings with tax incentive<br /><ul><li>Waive or defer college loans
  11. Visa for immigrant entrepreneurs </li></ul>Policy<br />
  12. Yes you can.<br />Myth: You cannot build a large company by bootstrapping<br />
  13. Finisar: Bootstrapping To Billions [EJ1] - $5b market cap in 2001<br />RightNow: The Montana Mogul [EJ2] - $500m market cap in 2009<br />SuccessFactors: Silicon Lazarus [EJ2] - $875m market cap in 2009<br />Stories<br />
  14. On the contrary.<br />Bootstrap the early stage. <br />Raise money later. <br />Preserve more equity.<br />Myth: Bootstrapping & Venture Capital are mutually exclusive<br />
  15. Don’t build anything until you have validated your concept.<br />Myth: Need to build a prototype to start selling.<br />
  16. Avoid very large funds.<br />Bootstrap first.<br />Mentor Capital, not Venture Capital<br />
  17. Bootstrap a venture.<br />If you have been laid off, create your own job.<br />
  18. Book raffle<br />Q&A<br />
  19. All Books on Amazon<br />Entrepreneur Journeys (Volume One)<br />Bootstrapping, Weapon of Mass Reconstruction (EJ2)<br />Positioning, How To Test, Validate, And Bring Your Idea To Market (EJ3)<br />Also, free online strategy roundtables for entrepreneurs<br />Next: Jan 14, 21, 28<br />Resources<br />
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