New graphic compares angel investors, venture capitalists, and business loans, and where that money is being distributed to businesses across the United States.
SALT LAKE CITY — Lendio, an online service helping people find viable business financing, released a graphic that provides a visual look at the state of funding for small business.
“Small businesses have long been the engine keeping the American economy alive,” said Brock Blake, Lendio CEO. “For small businesses, however, success often comes down to securing the right source of capital.”
In this study, Lendio took a deep dive into each source of capital and have uncovered where the funds are flowing, and identified common considerations, compromises and benefits of each. Much of the graphic compares angel investment, venture capital investment and business loans.
In 2010, angel investments totaled $20.1 billion, venture capital investments totaled $23 billion, and small business loans from banks exceeded $652 billion. In 2011, loans guaranteed by the Small Business Administration hit record highs of just under $20 billion.
“In many cases, those three sources of financing are determining the success or failure of small businesses nationwide,” Blake said. “Those numbers are so different because business loans fit the need for most of Main Street America.”
The graphic shows that small businesses employ just over half of all private sector employees, pay 44 percent of total U.S. private payroll and have generated 64 percent of net new jobs over the past 15 years.
“With the significant impact small business has on our economy, it’s important for business owners to understand the difference between various sources of funding so they can make the right decision that will grow their business,” Blake said.