In the world of business and technology, the headlines tend to follow the big money deals. VC this and IPO that – most often you're showed only one side of startup funding. While those venture capital and angel investor deals are arguably more impactful and more interesting because of their massive seven figure raises, invaluable mentorship and big name endorsements, they actually only account for a ridiculously small percentage of total startups funded in a given year.
According to Fundable, the company that published the infographic below, just .05 percent of startups are funded by venture capitalists, and a slightly better .91 percent are funded by angels. Yet it seems like all you hear about in the startup world are these venture capital and angel deals. The most money for startups, though, actually comes from family and friends (38 percent) and from the founders themselves (57 percent).
Sure this shows that the most valuable people in the startups world can be yourself and those closest to you. But it also paints a picture of how treacherous and big of a deal getting big-time funding can be for a startup. That's also assuming a small, new company would want large deals. Many might rather stay lean, keep more control and not worry about scaling out their business. Still, it's enlightening to see that while VC seems to reigns supreme in the startup world, your mom, best friend or even the person staring back at you in the mirror are your most valuable assets when starting a company.
