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.
By Laura Entis
Opinions expressed by BIZ Experiences 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.
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Related: Funding 101: How to Position Your Startup as a Good Investment
