While the idea for your startup comes from your brain and the drive to pursue it comes from your heart, the truth is you’ll never get the business off the ground without your wallet. A great idea won’t get anywhere without some cash behind it.
The source of that money may come from unexpected places. Did you know, for example, that only 1 percent of funding for startups comes from VC firms? In contrast, 24 percent of businesses find funding from friends and family and more than 80 percent are self-funded. Crowdfunding only accounts for 3 percent of funding, but crowdfunding itself has grown rapidly, becoming a $5.1 billion industry that raises $2 million each day.
Moreover, while almost $1.4 billion went to startups that focused on consumer products and services, entrepreneurs got more funding for entering industries such as media and entertainment, biotechnology, industry and energy or IT services.