Bootstrapping Flocks

Bootstrapping is the strategy at flocks.digital, to found a Flock.

Bootstrapping is preferred over venture capital, angel investors or one of the other startup capital raising mechanisms in the diagram below (by Yana Abramova from Pretiosum Ventures).

Bootstrapping requires little upfront resources, sourced from both:

source	one or more of the following resource options
(co-)founders	sweat equity private capital or a personal loan some other form of equity
flocks.digital	operational support through shared business capabilities such as: Sales and marketing: Flocks share opportunities amongst each other that they cannot fulfill themselves Supporting capabilities such as human capital management, IT, finance, facilities and legal & compliance pre-seed capital (up to 100k€)

The ratio of contributed resources can vary per Flock and is typically proportional to the final equity distribution when a Flock is spun out into a separate legal entity.

Key Principles

💡 We applied the same key principles to bootstrap flocks.digital as you can read in this blog article.

Focus on Revenue

The core principle is to achieve profitability and sustainable revenue generation as quickly as possible.

Lean Operations

Emphasis is placed on efficient use of resources and leveraging tools like AI 🤖, low-code platforms, and automation to scale leanly.

Benefits

Control and Flexibility

It allows founders to maintain greater control over their company and avoid the dilution of equity.

Sustainability

The emphasis on revenue generation and profitability ensures a more sustainable and resilient business model.

Next steps

Want to bootstrap your own Flock? Then register here on our app, share your idea for your Flock with our platform and find your Flock co-founder and members!