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Overview of Funding Sources

Who invests in startups? Five funding sources make up the vast majority of where startups get money. Each source differs in how much money it invests, at which stages it invests, and in what it brings to the table in addition to funding.

Key Elements:

• Friends and family

• Crowdfunding

• Accelerators

• Angel investors

• Venture capital firms

The Five Funding Sources

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Friends and Family

At a Glance

How much? $5,000–$100,000

When? Seed stage

A scrappy, talented guy decides to go out on his own to launch or buy a business. Without a huge network of seasoned “finance” people, he turns to the most business-minded and/or ...

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