The Kauffman Foundation is an admirable research and advocacy group that promotes the benefits of entrepreneurism. The organizations ethos is that developing self-sufficient people and a vibrant economy & society are pretty important things, something most level headed people would quickly concur. Last week Arnobio Morelix from Kauffman delivered a presentation at SXSW during the StartUp Oasis (sponsored in part by Kauffman) that was pretty interesting. Since much of the planet is not able to attend the tech/music/innovation love-fest in Austin I thought I would share his deck which was pretty interesting. Arnobio spent some time debunking certain myths that are widely accepted as truth.
The presentation titled, “Insights from the Fastest Growing Companies in America” zeroed in on Entrepreneurial Myths such as where funding actually comes from. Interestingly enough the vast majority originates from:
- Banks & Loans
- Personal Savings
- Friends & Family
- Credit Cards
Angel investors and VC’s were 5th and 6th on the list. In fact Arnobio clarifies that Venture Capital is NOT a pre-requisite for growth. The majority are funded by entrepreneurs with their own funds and most do not have to risk humiliation on Shark Tank so CNBC can boost ratings.
Another interesting truism is that 75% of high growth entrepreneurs had mentors. Perspective and valued advice counts. When questions arise it is good to have someone with experience (that you can trust) to speak to instead of flipping a coin.
The presentation is embedded below. Definitely food for thought.
In regards to the internet finance space, it is my opinion that crowdfunding can generate efficiencies at various stages of funding. From Angel on up. Time will prove if I am right.
