Bootstrap

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Bootstrap

Term used to describe the start-up of a company with very little capital.

Bootstrap

1. To start a company with personal finances rather than through loans or venture capital. This is obviously a large risk to the entrepreneur as he/she has no recourse should the business fail. On the other hand, it allows the entrepreneur to maintain control of the business and has the potential to be very successful. It is famously said that Ross Perot established Electronic Data Systems with $1,000 in personal savings; he maintained complete control of the company until its IPO six years later. This is an example of bootstrapping. See also: Seed money.

2. To calculate the yield curve on a zero-coupon Treasury bill. Because the U.S. Treasury does not issue new T-bills constantly, bootstrapping is used to create a yield curve by filling in the missing yields on the T-bills.

bootstrap

To assist a new business in getting off the ground.
References in periodicals archive ?
The higher yields that were obtained affirmed the hypothesis, and demonstrated the onset of boot-strapping.
We suggest investors get their feet wet for the following reasons: Management -- Company celebrated its 70th anniversary last year, the management team is relatively new and brings significant sophistication and experience; Boot-Strapping the Brand -- The ROCKY(R) brand is a material asset of the Company, boasting a certain cachet among a loyal customer base not unlike the loyalty of H.
The Si9139's two main dc-to-dc outputs provide individual control for power-up sequencing, power-good signal with delay, internal frequency compensation networks and automatic boot-strapping.