Barbara Pruitt, 816-932-1288; email@example.com, Kauffman Foundation
Kauffman Foundation's latest animated sketchbook video features Paul Kedrosky illustrating the give and take of new business financing
(Kansas City, Mo.), Dec. 1, 2011 – There's no question that startups need money to grow. But although there is not more capital available to new companies, the sources of capital—from personal savings to loan programs to crowdfunding platforms—abound despite the economic downturn.
Navigating the growing startup financing landscape is the focus of the latest animated video from the Kauffman Foundation's sketchbook series. In "Money Game," Kauffman Senior Fellow Paul Kedrosky breaks down the various methods that entrepreneurs use to raise capital for new ventures, as well as the benefits—and hazards—tied to each.
While entrepreneurs' greatest source of capital is personal savings, Kedrosky says in the video, the second most common type of new business financing is credit cards. He goes on to explain that, despite getting most of the attention, venture capital money is not a common source of funding for startups.