Where do startups actually get their funding
Ever wonder where startups get their funding? Many entrepreneurs ask potential investors to help fund their idea or to prove it out. Investors are not in the business of investing in ideas that have not been validated and that have not shown a significant amount of traction with potential customers.
Given this, where and how do early entrepreneurs fund their businesses? Kauffman Foundation (Access To Capital Report) has researched this topic many times and the results always seem to be about the same. However, the myths have endured. We have all read the stories about some young entrepreneur getting millions in funding for a new tech platform idea. The reality: The average age of a successful entrepreneur in the tech space is 38 years old. [Source] Entrepreneurs overwhelmingly fund their business themselves. They use their savings, their credit cards, their sweet equity, their friends and their families to fund the early days of their startup.
If you are a young founder and are looking at your startup and thinking how do I fund this endeavor, then look at yourself as the source. Looking for some guidance on how you might do that. Check out one of our new tools, Idea Now What. It has a great roadmap to help you develop your startup on the cheap.