Glossary

Bootstrapping

Bootstrapping refers to a company growth strategy based on using its own resources rather than relying on external investment to fund its development

Feb 8, 2025alejandro-gonzalezredwood-ventures

What is Bootstrapping?

Bootstrapping refers to a company growth strategy based on using its own resources rather than relying on external investment to fund its development. The term alludes to the image of pulling up the backs of one’s boots to put them on, symbolizing the difficulty and effort involved in growing a company with limited resources.

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Startup

A startup is an innovative company designed to grow exponentially and scale across multiple markets. In its early stages, it will face considerable uncertainty about the ideal product and business model to support that growth and scalability.

Feb 8, 2025

Accelerator and incubator

A business accelerator helps other companies grow in their early stages. An incubator, on the other hand, supports projects at the idea stage and helps them turn that idea into a product.

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Annual Recurring Revenue

Annual Recurring Revenue, or ARR, means annual recurring revenue. It is the total amount of predictable, recurring revenue a startup generates from its customers each year.