Which is the Right Startup Funding Option for You?

Which is the Right Startup Funding Option for you? Bootstrapping Bootstrapping: When an Entrepreneur Starts a Company with Little or No Capital Great $185B 57% Option For: Invested by Founders into their own Ventures Of Startups are Self Funded First time Entrepreneurs and Founders aiming to Avoid Investor Pressure What you Need A business idea that you can validate with customers A plan to action that will attain revenue based off of any initial investment Either personal ability or a team that is capable of building and maintaining your product Average of $48K Invested by Founders A large amount of time to invest into working on your venture Into their own Ventures Friends and Family Friends and Family Funding: Raising Capital through People that are Close to you Great $60B 38% Option For: Invested by Founder's Friends and Family into their Startups a year Of Startups are Funded by Friends and Family of the Founder First time entrepreneurs that are short on cash and lack the public credibility to raise other forms of capital What you Need A business idea and an execution plan 90000 A way to create value or a return for money invested A good reputation among your potential investors Average of $23K An agreement so both parties are fully Invested Per Venture aware of risk involved CrowdFunding Crowdfunding: Raising Small amounts of Capital from a Large amount of Individuals Great $5.1B $7000 Option For: Raised by Campaigns in 2013 Average amount that each Campaign Raises Ventures with a large audience and a useful consumer product What you Need Enticing bonuses for customers that donate A large network to market your campaign to $ $ $ $$$ $ $ $ $ Campaigns that can raise 30% of their goal A high quality video and description that will inspire visitors to donate in a week are more An attainable fundraising goal likely to succeed Angel Investing Angel Investor: A Wealthy Individual Willing to Invest in Early Ventures Great 258,000+ Option For: $20B Invested into new businesses Yearly Known Angel Investors In the US Alone Serious Entrepreneurs that have made Significant progress in their venture What you Need %24 Some of your own money invested into your venture Raised a small amount of money from family and friends To have already made progress or created a minimum viable product 80% of Angel Money Invested in Early Stage Ventures Your venture has at least one person working full time Venture Capital Venture Capitalist Firm: Organization that invests in Pre-IPO High Growth Companies Almost Great 3,995 Option For: $30B Invested in Companies in 2013 Companies received Venture Funding in 2013 Small companies that are operating successfully and looking to expand What you Need Significant prior funding from a source such as angel or personal financing Notable traction or revenue A capable, proven team with proven advisors A strong product market fit $100M yearly revenue potential Business ideas most likely to raise funding A clear, attainable plan for utilizing funds Raised Ready to start your Company? Visit Fl.co to get started FOUNDER FINSTITUTE GLOBALIZING SILICON VALLEY Sources: http://www.fi.co/posts/8621 http://www.pwc.com/us/en/press-releases/2014/annual-venture-investment-dollars.jhtml http://www.fundable.com/crowdfunding101/crowdfunding-statistics http://www.statista.com/statistics/269957/estimated-volume-of-funds-raised-by-crowdfunding-platforms-worldwide/ http://www.fi.co/posts/8701 http://www.forbes.com/sites/caroltice/2013/02/28/whos-launching-startups-how-theyre-funded-and-what-they-earn/ http://www.fundable.com/infographics/startup-funding