By Knowlton Thomas
What do entrepreneurs use to fund their startup in its earliest stages? Themselves.
According to Profit, 98% of those behind Canada’s hottest startups fund their startup with their own capital. 62% continue to do this post-launch for growth capital (check out their infographic here).
The only other significant source of startup financing in the earliest stagest is friends and family—22% of entrepreneurs squeeze their wallets for extra cash. Only 8% ask for money from them post-launch, however.
Credit cards become crucial once a startup launches. While just 4% use plastic to fund their infant company pre-launch, 26% use credit cards for growth capital.
12% of Canadian entrepreneurs head to the Business Development Bank of Canada for growth capital. Another 46% use a Canadian bank.
Reposted from Techvibes Media.
Knowlton is the Associate Editor of Techvibes Media. He has vested interests in business and financial subject matter, as well as technology and environmental affairs.
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