Bootstrapping refers to sustaining a business through personal investment and without external help. Healthcare entrepreneurs need to have "skin in the game," or personal, financial investment that demonstrates faith in the business and shows future investors the belief an entrepreneur has in the business. Bootstrapping is typically the initial funding source for healthcare entrepreneurs.
Personal investment can come in at least two forms: up-front cash invested into a business by an entrepreneur and deferring a salary or going without pay for a fixed period of time.
Related: Funding Sources for Life Science Startups
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Definitions are a weekly feature on eMed for current and aspiring healthcare entrepreneurs.