How Starting Entrepreneurs Fund Their Start Ups

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Arranging the needed funds for your start up is a crucial factor for its launch. Even though money is not the most important thing, it’s 100% needed when launching a new venture. If you are a starting entrepreneur, you most probably have been thinking about how exactly to find cash for your starting business. Well, the consulting company has created this wonderful infographic, showing some interesting statistics about how start up get mainly financed.

Did you know that more than half a million new companies are started each month only in the United States? This is a huge number, but there is more. Each start up rises around $74 400 on average and this makes more than $531 going to starting companies each year in US. We are talking a big thing here. Below are the main sources of cash and what percentage of the funds is raised by each:

Personal Funds, personal credit – 57%
Friends and family – 38%
Venture capital – 0.05%
Angel investors – 0.05%
Banks – 1.43%
Crowdfunding – 0.96%

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So, if you are wondering how to finance your starting business, you will have the best chances if you take a personal loan, or ask your friends and family for help.

Check some more interesting statistics on the infographic below:

Some start up funding statistics in the United States, by

These statistics show that almost all (95%) of these half a million companies that are started every month are financed with personal funds of the entrepreneur or his family. This means, that start ups in the USA have really limited options for financing. This is pretty amazing for me, having in mind that the states are the most developed form of capitalism today. Just 5% of all starting ventures get access to bigger and less expensive sources of cash and this is far too low. Imagine what would it be, if there were more financial instruments for starting entrepreneurs…

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