by: Lois Kirkpatrick
While angel investors and venture capitalists sometimes make the difference between success and failure for a startup, they're not your only funding source. In fact, very few small businesses rely on angels or VCs to get off the ground. The Kaufman Foundation surveyed the fastest-growing U.S. firms from 1996 - 2014 and found out that this is the breakdown for where startups get their funding:
67.2 percent - personal savings
51.8 percent - bank loans
34.0 percent - credit cards
20.9 percent - family
13.6 percent - have not used financing
11.9 percent - business acquaintances
7.7 percent - angel investors
7.5 percent - close friends
6.5 percent - venture capitalists
3.8 percent - government grants
What's missing from the Kaufman Foundation's list is crowdfunding. OnlineMBA.com offers a short, simple overview on the basics of raising money online to get your business off the ground.
The Kaufman Foundation does offer an excellent, free course on funding for founders. It's presented in eight short videos, which each take about five minutes to watch. The course is taught by Bill Reichert, who founded several businesses before becoming a venture capitalist whose company Garage Technology Ventures has funded more than 150 startups.
Image credit: Microsoft clip art
Content contributed by Lois Kirkpatrick of Loudoun SourceLink, a proud affiliate of U.S. SourceLink, America’s largest resource network for entrepreneurs.