Startup Funding Ressources Illustrated – Savings, Credit Cards, Banks and Venture

by andrej 24. August 2012 14:50

The Kauffmann Sketchbook has put together an illustrated video covering all major sources of funding for startups. It is nice to watch and even covers some interesting points:

Private Savings are the Biggest Funding Ressource – Before Venture and Banks

So where do entrepeneurs get money:

  1. private savings (50% of all startup dont need more)
  2. credit cards (yes, credit cards!)
  3. friends and family
  4. banks (love the quote: ”You can get all the funding you want as long as you dont need it.”)
  5. venture capital (less than 20% of the fastest growing companies in the US received venture capital funding”)

When do you need Money From Venture Capitalists?

Only take venture capital if you are in race/growth business, where you need large sums to scale and compete in the market. Otherwise, just stay in control of your business.

[via the 37signals blog]

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business | video | venture

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