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:
- private savings (50% of all startup dont need more)
- credit cards (yes, credit cards!)
- friends and family
- banks (love the quote: ”You can get all the funding you want as long as you dont need it.”)
- 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]