Did You Know...

That informal investors--family members, friends, and even strangers--funded 99.6% of all business start-ups in the 41 countries included in the 5th Annual Global Entrepreneurship Monitor (GEM)? The 2003 study conducted by researchers at Babson College and London Business School showed that three percent of all adults in GEM countries have invested in someone else's business. The majority of these non-institutional investors were close family members (43.7%), followed by friends and neighbors (29.2%), strangers (9.3%), relatives (8.9%), and work colleagues (8.9%). In contrast, fewer than 37 out of 100,000 startups received venture capital money.

Kauffman Foundation FastTrac Press Release, Jan. 8, 2004.

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