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Seven Ways to Fund a New Startup Venture

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Seven Ways to Fund a New Startup Venture

Seven Ways to Fund a New Startup Venture

If you’re looking to create the next Paypal Mafia, this infographic documents seven different ways to fund your startup venture.

The options include: bootstrapping, crowdfunding, seed funding from family and friends, traditional lenders, angel investors, incubators, and venture capitalists.

Original graphic from: Wrike

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Chart of the Week

The Unparalleled Explosion in Cryptocurrencies

In 12 months, the number of cryptocurrencies worth >$1mm has soared by 468%. Meanwhile, the total value of all currencies together has skyrocketed by 1,466%.

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The Unparalleled Explosion in Cryptocurrencies

Over 300 new coins reached $1mm market cap in 2017

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

After the massive Bitcoin price surge in November 2013, the popularity of launching new cryptocurrencies took off along with it.

In fact, if you go back at historical snapshots around that time, you’ll see that there were literally hundreds of new coins available to mine and buy. Here’s one from November 2014 – a time when there were only 32 coins that were worth more than $1 million in market cap, and 354 coins that were worth less than $50,000, usually trading for tiny fractions of a cent.

It seems like everyone and their dog were launching cryptocurrencies back then, even if they were a longshot to materialize into anything.

Then vs. Now

Fast forward to today, and things haven’t changed much – many people and companies are still launching new cryptocurrencies through a mechanism known as an ICO (Initial Coin Offering).

Cryptocurrency ICO activity
The only difference?

Today, there is real money at play, and in 12 months the number of cryptocurrencies worth >$1 million has soared by 468%. Meanwhile, the total value of all currencies together has skyrocketed by 1,466%.

Cryptocurrency is so hot, in fact, that raising money through ICOs has become more effective than traditional early-stage angel and VC funding.

Funds raised by ICOs vs. early-stage VCs

For the long-time advocates of Bitcoin and other cryptocurrencies, it is now their moment in the sun.

And with this ICO activity and a wealth of opportunities emerging, a new breed of Bitcoin millionaire has been born. Like the wealthy tech founders that exit and give back to their local startup ecosystems, these new digital tycoons are using their newfound wealth to invest in upstart crypto projects that show potential – ultimately, further enhancing the ecosystem.

Out of the Woodwork

Of course, whenever there is a massive surge in prices and speculation, there are two other players that tend to come out of the woodwork.

One is of the scammer and shyster variety, and certainly crypto-fueled scams are a concern for everyone else in the broader ecosystem.

Perhaps even a bigger threat, however, are the regulators – and in recent weeks the SEC has voiced concerns about ICO “pump and dump” schemes, while Canadian authorities have clearly stated that “most ICOs need oversight”.

Cryptocurrency ICO activity

With the market exploding with hundreds of new cryptocurrencies and the total value reaching $177 billion, a new series of questions has emerged: what risk do ICO scams ultimately have on market? And, could misguided regulation disrupt the momentum of the crypto boom?

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The Billion Dollar Startup Club

The billion dollar startup club is an exclusive group of companies worldwide that have reached over $1B+ valuations from venture capitalists.

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The Billion Dollar Startup Club

The Billion Dollar Startup Club

The Wall Street Journal has released a standalone interactive infographic that allows you to read through all 73 companies valued at over $1 billion dollars (USD) in detail based by country, time of last raise, and other useful details. It looks like it will be constantly updated as well based on new raises and valuations, so it is definitely a link worth bookmarking.

We do have one issue with it though – it seems that they have missed some of Canadian “narwhals” that are valued at over $1 billion dollars. It is true that some of them are bordering on this valuation, but definitely Hootsuite and Slack are missing from the graphic. Hootsuite and Slack both reached the $1 billion plateau last fall.

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