:: COMPARE ::
The short answer
Bootstrapping doesn't abolish the burn rate — the founder's own savings burn too. What it removes is the funding deadline: the countdown runs to the month revenue has to cover the bills, not to the next round. Revenue IS the runway, which is a harder constraint and a much simpler one.
Side by side
| Aspect | Bootstrapping | Burn rate |
|---|---|---|
| Fuel | Revenue | Investment |
| Runway | Indefinite or immediate | Calculable |
| Ownership | Retained | Diluted |
| Failure mode | Stagnation | Running out |
What each one means
Building a company on internal cash flow and personal savings, with no outside capital. Growth is capped by revenue; ownership is not. The word carries other senses too: starting a computer by loading its own start-up code, and, more generally, getting anything going without outside help.
Full definition of Bootstrapping →How fast a company consumes cash, normally stated per month. Divided into available funds, it gives the runway — how many months of cash are left before it runs out. Gross burn counts everything going out; net burn subtracts what comes back in.
Full definition of Burn Rate →