🚀 Breaking the myth 8 ✅ Reality: Bootstrapping can be your greatest superpower in the early days!
By Jack-Hermann NTOKO FintechTech Afro Entrepreneur | 18 Years in Financial Services | Stanford University Entrepreneurship & Innovation | Passionate about African Investment & Business Ecosystem
My Journey into the world of « bootstrapping »
As someone who has spent nearly two decades in financial services across Europe, and who has studied innovation and entrepreneurship at Stanford University, I’ve seen countless startups rise and fall depending on their ability to raise capital. But I’ve also witnessed something even more powerful: founders who thrived not because of external funding, but because of their ability to build lean, customer-focused businesses from the ground up. This is the essence of bootstrapping.
As an Afro-entrepreneur based in Europe, deeply committed to Africa’s business transformation, I’ve seen firsthand how capital scarcity can either be an excuse or a catalyst for innovation. Let’s dive into the misunderstood strategy of bootstrapping and why it might just be the superpower African startups need.
The origin & essence of « bootstrapping »
The term « bootstrapping » comes from the old phrase « pulling oneself up by one’s bootstraps » a metaphor for achieving success through one’s own efforts, without external help. In the startup world, bootstrapping means growing your business using limited personal resources and reinvesting profits rather than relying on external funding like venture capital or angel investments.
Historically, some of the world’s most iconic businesses started this way. They didn’t begin with millions from VCs or tech incubators. Instead, they relied on grit, creativity, and an obsessive focus on solving real problems.
Why « bootstrapping » matters especially in Africa.
Africa is often portrayed as capital-starved. While funding is growing, it’s still disproportionately concentrated in a few countries and sectors. As a result, African founders must often build without the luxury of funding.
But here’s the twist: this very constraint can be a blessing.
« Bootstrapping forces discipline, creativity, and laser-focus on value creation. »
When you bootstrap, every expense must be justified. Every customer must be delighted. And your business must generate cash not just hype. This is where sustainable, scalable growth is born.
Common myths about « bootstrapping »
Let’s bust a few misconceptions:
Myth 1: Only broke founders bootstrap.
Reality: Founders choose bootstrapping for control, discipline, and long-term equity preservation.
Myth 2: Bootstrapped companies can’t scale.
Reality: Many unicorns started this way. Growth is possible; it just looks different.
Myth 3: It’s old-school or not innovative.
Reality: Bootstrappers often innovate faster due to customer obsession and frugality.
Global « bootstrapping » success stories
Am sure you have heard about these six companies that prove you don’t need millions to make millions:
1. Mailchimp (USA)
Started as a side project by Ben Chestnut and Dan Kurzius, Mailchimp grew into a $700M/year revenue machine completely bootstrapped before selling for $12 billion to Intuit.
2. Basecamp (USA)
Founded by Jason Fried and David Heinemeier Hansson, Basecamp rejected the VC model, focusing instead on profitability and simplicity. It became a cult favorite in productivity software.
3. Spanx (USA)
Sara Blakely started Spanx with $5,000 in savings and no outside investment. She became the youngest self-made female billionaire in the US.
4. GoPro (USA)
Nick Woodman used his own savings and a $35,000 investment from his mom to start GoPro. It grew into a billion-dollar company before going public.
5. Pluralsight (USA)
Started as a classroom training business in 2004, it was bootstrapped for nearly a decade before raising capital and going public in 2018.
6. GitHub (USA)
The developer platform was bootstrapped by its founders and ran profitably for years before being acquired by Microsoft for $7.5 billion.
African « bootstrapping » heroes
Despite limited visibility, many African entrepreneurs are building impactful ventures through bootstrapping. Let’s share some of them are six you should know:
1. Paystack (Nigeria)
While Paystack eventually raised funding, it started lean bootstrapped by Shola Akinlade and Ezra Olubi . Their early growth came from grit and an obsession with user needs.
2. LifeBank (Nigeria)
Founded by Temie Giwa – Tubosun sun, LifeBank started with minimal resources, addressing a life-and-death problem: blood and oxygen delivery for hospitals. It scaled through pure hustle and impact.
3. Kazi (Cameroon)
A startup helping young professionals find meaningful jobs and training, Kazi+ was bootstrapped by a small team using personal savings and local grants, reaching over 20,000 users.
4. Kasha (Rwanda)
Kasha is a health access platform for women. Co-founder Joanna Bichsel started with limited funding, leveraging partnerships and digital platforms to scale impact.
5. FarmDrive (Kenya)
Started by two female founders, FarmDrive helps smallholder farmers access credit. Early development came from bootstrapping and local innovation competitions.
6. Eneza Education (Kenya)
Providing educational content via SMS, Eneza began with lean, bootstrapped operations before gaining recognition. It has now reached millions across Africa.
The « bootstrapping » strategy – SawaLions’s Blueprint
As someone who has worked in a startup and with startups across Europe and Africa, here my recommendation, my lessons learned, this practical roadmap for bootstrapped success:
1. Start small, But start now: Use what you have. Build with minimal resources and validate demand early.
2. Solve a painful, urgent problem: Your solution must be essential, not optional. This ensures word-of-mouth growth.
3. Monetize early: Don’t delay revenue. Sell from day one even if it’s messy.
4. Control costs like a CFO: Track every expense. Keep operations lean and efficient.
5. Focus on customers, not & never on investors: Your customers fund your growth. Treat them like royalty.
6. Reinvest profits to scale: Growth doesn’t require VC money. Reinvest your earnings to hire, build and scale.
When (and How) to raise capital
Bootstrapping isn’t anti-funding; it’s strategic. Once you’ve proven your model, you’re in a stronger position to:
- Negotiate better terms
- Choose investors who share your vision
- Scale with clarity, not desperation
As someone who been there, done that, I advised startups and reviewed funding pitches, I can say with confidence: investors love founders who can survive without them.
Africa needs more and is built by « bootstrappers »
Bootstrapping isn’t just a strategy; it’s a mindset. And in Africa, where capital is unevenly distributed, it’s often a necessity. But it also builds resilience, innovation, and long-term success.
I believe in an Africa where founders don’t wait for permission to build. Where ideas are tested in the market not in pitch decks. Where customers, not investors, validate your worth.
As an entrepreneur passionate about Africa’s growth, I encourage every founder to consider bootstrapping as more than Plan B; it might just be your best move.
🔑 Key takeaways:
- Bootstrapping builds strong, resilient companies through discipline and customer focus.
- Some of the world’s biggest businesses started without external capital.
- African founders are proving that impact and profitability are possible without VC money.
- Bootstrapping forces early monetization and real-market validation.
- You can always raise funds later, but bootstrapping gives you leverage and options.