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Sources of financing

Personal savings and support from family and friends are crucial financing sources for startups. According to the Inc. 500 annual list, 25% of businesses began with less than $5,000, while 50% started with under $25,000. Notably, 75% had less than $100,000, and less than 5% had over $1 million. While leveraging personal funds can provide quick access to capital, it comes with risks – net worth and income can be intertwined in a "leaky rowboat" scenario where financial stability is threatened. Understanding advantages and disadvantages is key.

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Sources of financing

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