bplanGURU
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
