How Startups Survive the Financing Valley of Death and Launch
Rock star venture capitalist Paul Kedrosky lays it on the line about how the vast majority of startups are funded initially. According to Paul, 84% of fast growth companies never receive a dime of venture capital.
less than one-in-five of the fastest-growing and most successful companies in the United States had venture investors, according to the study. The report evaluated venture financing among companies on the Inc. 500 list of the fastest-growing private companies. Only approximately 16 percent of the roughly 900 unique companies on the list from 1997-2007 had venture capital backing. (pdf)