What is the difference between bootstrapping and external investment in the drinks industry?

Bootstrapping and external investment are distinct funding approaches in the drinks industry.

**Bootstrapping** is defined as fully self-funding your business using your own capital and taking no outside investment. This means relying entirely on personal funds to launch and grow the brand.

**External investment** includes any funding raised from outside sources. Members note that:

- **SEIS (Seed Enterprise Investment Scheme) rounds** count as external investment and therefore do not qualify as bootstrapping, even though they are smaller rounds - External investment can disappear quickly if not managed carefully — one member noted they received external funding two years ago but the cash "disappeared way too quickly" and they've since operated on "cash zero for twelve months"

Members emphasize the distinction is clear-cut: if you've raised capital from external sources (whether SEIS, angel investment, or larger rounds), you are no longer bootstrapping.