Start-up money from unexpected places

Karl McFaul Financial Capital Leave a Comment

The source of start-up money may come from unexpected places. In the United States 2014 only 1 percent of funding for startups comes from VC firms. In contrast, 24 percent of businesses find funding from friends and family and more than 80 percent are self-funded. Crowdfunding only accounts for 3 percent of funding, but crowdfunding itself has grown rapidly, becoming a $5.1 billion industry that raises $2 million each day.

Moreover, while almost $1.4 billion went to startups that focused on consumer products and services, entrepreneurs got more funding for entering industries such as media and entertainment, biotechnology, industry and energy or IT services.






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