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 ?
In particular, the bootstrapped MLE coefficients tend to be higher in absolute terms than those of the OLS by a margin of 0.
Once appropriate point estimates of the required forecasts are obtained the model has been recursively bootstrapped to obtain the probability distributions of the average demand, peak demand and of forecast errors conditional on current information.
She suggested first, however, that voice mail be bootstrapped in her department.
Socialcast, a leading provider of on-demand corporate social networks and micro-sharing solutions, today announced it has been selected as a 'Best Bootstrapped Startup' finalist for the 2008 Crunchies, a collaborative award effort between leading technology blogs GigaOm, VentureBeat, Silicon Alley Insider and TechCrunch.