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

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]