Entrepreneur Commons

the story

Home - Previous - Next

The good news is that despite the lack of an efficient process for funding business at the seed stage, it is possible to do a lot with very little. The average capital needed by companies who made it into the top 500 fastest growing companies list from Inc magazine is $75K. And if you look at the top 5000 fastest growing companies the average capital to get there is $25K. Of course this does not mean that everybody can make it with this kind of money, but it is a number showing that bootstrapping works. Despite the hype and the Googles on the front page of newspapers, VCs are not THE answer to funding startups.