Which term describes funding a startup by using personal resources and earnings rather than external financing?

• A. Bootstrapping
• B. Angel
• C. Equity Capital
• D. Line of Credit

Answer: (A)

Bootstrapping means funding a startup with your own money and the business’s own earnings rather than seeking outside investors or debt. This approach relies on personal savings, reinvested profits, and sometimes early cash flow to cover expenses and growth, preserving full ownership and control. The other paths involve external funds: an angel brings in outside capital in exchange for equity or debt terms, equity capital means funds raised from investors in exchange for ownership, and a line of credit is a bank loan that must be repaid with interest. Because bootstrapping centers on using personal resources and internal earnings, it best fits the description in the question.