Thus, it can be surmised that many new businesses have very serious money tied up in their launches, reflecting the personal commitment of their founders. Of the total $531 billion raised to launch new ventures in the United States alone over the past year, personal savings and credit was the leading source, accounting for $185.5 billion, or about 35% of all seed capital. Family and friends accounted for $60 billion, or 11% of the total. Venture capital comes in distant third at $22 billion, or a paltry four percent of the pot.
Self-funding is not a bad thing at all. Viewers of the show Shark Tank, for example, see first-hand that even the most hard-hearted investors have a deep respect for founders who put up a lot of their own equity into an idea.
Fundable, a crowdfunding site, analyzed the numbers from the past year and provides breakdowns in the infographic below of where startup seed money really comes from.