This Is How To Get Funding For A Startup

1 Star2 Stars3 Stars4 Stars5 Stars6 Stars7 Stars8 Stars9 Stars10 Stars (7 votes, average: 9.71 out of 10)
Loading...

Arranging the needed funds for your startup is a crucial factor for its successful 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 the cash for your starting business. Well, the consulting company Startups.co has created this wonderful infographic, showing some interesting statistics about how startups get mainly financed. Here you can not only see the main options about how to get funding for a startup but also some intriguing statistics about the ways newly founded companies obtain their initial cash, the average amount raised per company, and some other interesting numbers.

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 the 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%

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. At least this is the startup funding most of the starting entrepreneurs take advantage of, probably because it’s not the most desirable, but just the most accessible. It’s no secret that newly founded companies don’t have any credit history or whatever history at all to apply for any of the other types of financing. According to the infographic, almost all (95%) of these half a million companies that are started every month in the US are financed with personal funds of the entrepreneur or his/her family. This means that startups in the USA have really limited options for financing. This is pretty amazing to 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…

Check some more interesting statistics on the infographic below:

Some start up funding statistics in the United States

Some startup funding statistics in the United States, by startups.co

If you liked the article, please use our cool social buttons and share it with some friends on your best social site. Thanks!