Where Startup Funding Really Comes From (Infographic)
VCs and angel investors get a lot of attention, but personal loans and credit, followed by investments from friends and family, are the top funding sources for startups.
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Prominent VCs and angel investors may dominate the headlines with their big sticker investments, but personal loans and credit – along with investments from friends and family – make up the lion's share of funding for startups in the U.S.
According to data compiled by Fundable, only 0.91 percent of startups are funded by angel investors, while a measly 0.05 percent are funded by VCs. In contrast, 57 percent of startups are funded by personal loans and credit, while 38 percent receive funding from family and friends.
Want a more detailed breakdown of startup funding? Check out the infographic below.
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Related: Funding 101: How to Position Your Startup as a Good Investment