Selffunds

Self-funds, also known as self-financed projects or personal investments, refer to the practice of individuals or groups using their own money to fund a particular endeavor. This can range from personal hobbies and small business startups to larger community projects or even political campaigns. The key characteristic of self-funding is the absence of external financial institutions, such as banks or venture capitalists, or public fundraising efforts like crowdfunding.

Individuals may choose to self-fund for a variety of reasons. It can offer complete control over the project's direction and a faster timeline for implementation, as there are no external stakeholders to appease or lengthy approval processes to navigate. It also allows the entrepreneur or individual to retain full ownership and potential profits of their venture. However, self-funding inherently limits the scale of a project to the available personal capital, which can be a significant constraint. It also places the entire financial risk on the individual or group involved.

The concept of self-funding is distinct from bootstrapping, though they share similarities. Bootstrapping often implies using early revenue from a business to reinvest and grow, while self-funding can involve using savings, personal loans from family or friends, or even liquidating personal assets. Regardless of the specific source, self-funds represent a commitment of personal resources to bring an idea to fruition.