Success Without VCs Abounds in Business
Though often overlooked, there are plenty of companies like Point B that build their businesses organically through revenues and profits.In fact, a recent report from Babson College and the London School of Business concluded that fewer than one in 10,000 companies in the United States receive their initial funding from venture capital firms. The Global Entrepreneurship Monitor report also found that entrepreneurs provide 65 percent of their startup capital, with the rest of the funding typically coming from friends, family or co-workers.
“If self-funding by entrepreneurs and informal investments dried up, entrepreneurship would wither and die,” the authors wrote.
robhyndman.com » Blog Archive » The Stats on Bootstrapping on September 19th, 2005 2:28 am
[...] Dane Carlson recently posted some interesting research from Babson College and the London School of Business on this, which concluded that “fewer than one in 10,000 companies in the United States receive their initial funding from venture capital firms”. Heidi Neck, an assistant professor of entrepreneurship at Babson College, estimates that fewer than 2 percent of companies ever receive venture capital financing. That leads her to believe that too much emphasis — including media attention, education and government support — is given to venture-backed startups. [...]
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