bplanGURU

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Thursday, December 02, 2004

When you get together with family this Holiday Season...

Don't forget that 50% of informal investment (as opposed to VC investment) goes to a relative's business; 28.5% to a friend or neighbor's; 6.1% to a work colleague's; and 9.4% to a stranger's.

Seriously, though you risk pi**ing off your kin, informal investors accounted for $108 billion in start-up investment in 2003. This compares to only $18 billion invested in a total of 2,500 companies by VCs.

Go where the money is.

The complete Kauffman Foundation report is available here:
Kauffman Report

posted by Dave Orsborn 7:35 PM
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