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Where Startup Funding Comes From

According to sources such as the Center for Venture Research and US Small Business Administration, startups are popping up quickly throughout the country. 565,000 startups launch each month, averaging $78,406 raised each and totaling more than $531 billion annually. The majority of this funding total comes directly from the entrepreneur, through a combination of personal savings and credit. Friends and family are large contributors as well – more than VC s and angel investors combined. This infographic breaks the numbers down even further.

where-startup-funding-really-comes-from-infographic

Easy to tweet:

The American #startup scene is growing rapidly, with more than half a million being launched every month. TWEET THIS
Startups raise an average of $78k each, totaling more than $500 billion per year! TWEET THIS
Funding sources vary, with the majority ($185B) coming from savings & credit. The next highest source: friends & family ($60B). TWEET THIS
57% of #startups funded are done so with the entrepreneur’s personal savings and credit, averaging $48,000 each.    TWEET THIS
One growing trend is #crowdfunding, contributing more than $5b annually. Campaigns average $7k each, over 1m successful campaigns to date.    TWEET THIS
Friends & family invest in 38% of startups, averaging $38k each. Paltry when compared to #VCs, investing $5.94 mil to just .05% of startups.    TWEET THIS
#Angel investors are much more active than #VCs, writing 16x as many checks and investing in nearly 62,000 companies each year.    TWEET THIS
Banks give out over 97 thousand loans each year, funding 1.43% of #startups.   TWEET THIS

About the author: Willie Diaz

Willie graduated from CUNY Baruch College in 2013 with a degree in English and minors in entrepreneurship and anthropology. Born and raised in New York City, he also took courses in journalism and published articles with Baruch’s award winning online magazine Dollars & Sense.

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