Startups and capital: 4 eye-opening statistics

Read these 4 statistics and change your perception of raising capital to startups

Two women shaking hands and smiling in work context.

Raising capital can be a hard and time-consuming process for startups. There are several ways to do it: fund yourself, angel investment, crowdfunding, VC, among others…

Well, today's focus isn't on how you can fund your business through each of these ways. Today's post focuses on 4 hand-picked statistics that reveal the true reality of making money for a business.

Contrary to what many people think, raising capital for a startup is not always just about VC, although many headlines make it seem like it.

So, we present you 4 statistics, selected by Fundera, that will leave you surprised:

#1. 77% of small businesses rely on personal savings for their startup funds.

This means that even if entrepreneurs raise capital externally, more than three-quarters of new startups need financial protection from their founders.

✓ Takeover: start your own business when you have a solid amount of savings to use as startup capital for the first months.

#2. Less than $5,000 is the amount of money that a third of small businesses start with.

This can be a meager amount compared to the huge amounts that many startups raise. However, this can be a good incentive for those who want to start their businesses with personal savings, for example. Of course every company is different, and this amount can vary. But it's not impossible to start a small business with $5,000 of startup funds.

✓ Takeover: Having huge funding in the beginning isn't always as significant as you think.

#3. Only 0.05% of startups raise venture capital.

This may seem strange to many entrepreneurs. We are often told that raising venture capital is the hallmark of a successful founder, even though only 0.05% of small businesses raise venture money. This statistic may paint a more realistic picture of what startup funding is like for any aspiring startup founder.

Takeover: Don't overlook other ways to raise capital. VC represents less than one percentage point of the initial funding as a whole.

#4. Startups with two co-founders instead of one raise 30% more capital.

Have you ever heard "teamwork makes the dream work"? That's true. When we talk about raising capital for startups, they can benefit from an average of 30% more capital if they have two founders. Why? This is an important aspect for investors, and demonstrates a stronger, more reliable and balanced team.

Takeover: Bet on creating a good team. It will be a valuable element in proving your worth to investors.

What if we say that there are other ways to start your small business, and that all you need to do is attend a 48-hour workshop?

If you have an ocean-related business idea, or are interested in creating one, this could be your chance to put it on the market. Know all about it here.

Did you like this content? Don't forget to check out other great content about entrepreneurship, startups, business and teams here on the BGI Blog. You'll be able to find lots of tips, curiosities, facts and statistics, meet startups from our network and stay up to date with all our latest opportunities.