EFactor is your online destination for all things entrepreneurial. Find funding, get advice, expand your network, and watch your business grow!

1. Bootstrapping
An alternative to funding
Author : Eva hukshorn, partner EFactor

2. 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!

3. 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.

4. 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

5. 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

6. 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

7. 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.

8. 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

9. 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?

10. BOOTSTRAPPING - CASESTUDY
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

11. BOOTSTRAPPING - CASESTUDY
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)

12. BOOTSTRAPPING - CASESTUDY
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

13. 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

14. Visit Now
http://www.efactor.com/
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http://www.twitter.com/efactor

15. 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!