Whether your small business is just starting out, or you’re looking for the funds to take it to the next level, it’s important to be aware of the alternative sources of funding available to you beyond the traditional small business loan options.

The world of funding for startups and entrepreneurs has changed pretty dramatically in the last few years. As has been the trend in the world at large, things have moved away from the one-on-one transactions and toward a more social model that leverages the viral potential of the Web.

The infographic below, created by Startups.co, illustrates this point along with some other interesting information about trends by industry.

Before you dive in, here are some definitions (courtesy of Wikipedia) that might be helpful if you have not done a lot of research yet into the funding world:

– Venture Capital (VC) is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in.

Angel Investor is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. A small but increasing number of angel investors organize themselves into angel groups or angel networks.

Crowdfunding explains the collective effort of individuals who network and pool their money, usually via the Internet, to support efforts initiated by other people or organizations.

If you’re interested in the growing Crowdfunding trend, some great sources to check out include Kickstarter, Crowdfunder, Indiegogo, and Appbackr — all of which made Forbes’ Top 10 list in May, 2013.

[Click image to view larger]


About the Author: Sarah Matista is the Online Content Specialist and resident blogger at Webs. Loves branding, marketing, whales. Get more from Sarah on Webs’ Blog and Google+.

4 Responses

  1. Reply
    Jul 11, 2013 - 06:12 AM

    Great infographic! It’s really interesting how quickly alternative finance methods like crowdfunding and angel investors have grown – really promising for SMEs who have struggled to secure financing elsewhere.


  2. Reply
    Jul 29, 2013 - 05:13 AM

    Greetings! This is my first visit to your blog!
    We are a team of volunteers and starting a new project in a
    community in the same niche. Your blog provided us useful information to work on.
    You have done a wonderful job!

  3. Reply
    Business Registration Philippines
    Sep 23, 2013 - 02:18 AM

    Nice infographic! It’s very informative! You gave a lot of information that may be useful to us especially to business owners. Keep us informed. Thanks for sharing.

  4. Reply
    Fresh local cheeses
    May 12, 2015 - 11:25 PM

    Thanks for another wonderful post.Thanks for the share.

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