Here is another interesting infographic that visually depicts a break-down of startup funding for 2014. While equity crowdfunding has captured more than a few headlines, the reality is that this new method of capital formation is still quite small and in its infancy. That’s ok though, as there is plenty room to grow.
This specific infographic is courtesy of the creative team at Fundable, a platform that claims “over $140 million committed to businesses” via their platform.
Some interesting bullets from this graphic:
- The majority of businesses are self-funded at 82%
- The balance of funding from one or more sources (according to the National Venture Capital Association) are as follows:
- Loans and Lines of Credit (@ 41 % each)
- Friends & Family 24%
- Crowdfunding 3%
- Venture Capital 1%
- Hottest sector for funding is Software followed by media / entertainment
- Crowdfunding boomed in 2014 (according to the Crowdfunding Centre) with a raise rate of $2 million / day
- Number one city for crowdfunding: San Francisco
- Number one state (or district) for crowdfunding: Washington, DC
