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.

learn more about Laura Entis

By Laura Entis

Opinions expressed by Entrepreneur contributors are their own.

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.

Click to Enlarge+

Where Startup Funding Really Comes From (Infographic)

Related: Funding 101: How to Position Your Startup as a Good Investment

Laura Entis
Laura Entis is a reporter for Fortune.com's Venture section.

Related Topics

Editor's Pick

This 61-Year-Old Grandma Who Made $35,000 in the Medical Field Now Earns 7 Figures in Retirement
A 'Quiet Promotion' Will Cost You a Lot — Use This Expert's 4-Step Strategy to Avoid It
3 Red Flags on Your LinkedIn Profile That Scare Clients Away
'Everyone Is Freaking Out.' What's Going On With Silicon Valley Bank? Federal Government Takes Control.
Leadership

How to Detect a Liar in Seconds Using Nonverbal Communication

There are many ways to understand if someone is not honest with you. The following signs do not even require words and are all nonverbal queues.

Business News

These Are the Most and Least Affordable Places to Retire in The U.S.

The Northeast and West Coast are the least affordable, while areas in the Mountain State region tend to be ideal for retirees on a budget.

Business News

'Things Will Go Wrong.' Google Releases Its Chatbot Bard With Caution.

The AI-powered search tool went live today to a limited number of users in the U.S. and the U.K.

Business News

Carnival Cruise Wants Passengers to Have Fun in the Sun — But Do This, and You'll Get Burned With a New $500 Fee

The cruise line's updated contract follows a spate of unruly guest behavior across the tourism industry.