The top source of startup funding is Personal Savings, followed up by family and friends.
Our Funding Post and Youtube Video has been very popular, so I decided to followup on your interest with some additional research and information on small business funding. After contacting an Angel Investment Firm, I was put in touch with the COO of Fundable, Elliot Schneier.
Crowdfunding generates over 3 Billion in funds every year and Fundable focuses on Business Crowdfunding
Fundable is a business crowdfunding platform where businesses are connected with investors of all sorts, ranging from individuals to large VC firms. We got a couple of gems from Elliot, specifically around what makes a great startup. Investors have a formula to figure out the likelihood of a company’s success, there are certain things a business must have. So, whether looking for funding or not, if you want to be successful, then you’ll need a few key elements.
One is to target a specific and known problem that people have, not something you think needs fixing, but an issue there is social proof of pain. Then, solve that problem in a very specific and scale-able way.
Elliot explains this much better in the interview below.
MP3 Podcast With Elliot Schneier, COO of Fundable. Listen here.
Here is one of Fundable’s projects, a Craft Brewery in Texas. They raised 124% of their funding goal.