Finance & Banking

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Start-up Capital:

  • Inner City 100 companies raised an average of $352,322 to start their companies (median $50,000).

Top 3 Sources of Start-up Capital:

  1. 81% - Personal assets

  2. 27% - Loan or line of credit

  3. 17% - Assets of family and/or friends

Start-up Capital Fundraising Experience:

  • 43% of CEOs reported that capital was relatively easy to obtain.

  • 21% reported that limited sources of capital were available, resulting in a lower investment than planned.

  • 36% reported that they were unable to obtain sufficient capital, resulting in an inability to grow the business.

Growth Capital:

  • 75% of companies reported having raised additional capital since start-up

  • $4.2 million was the average additional capital raised (median $400,000)

Top 3 Sources of Growth Capital:

  1. 81% - Loan or line of credit

  2. 32% - Personal assets

  3. 23% - SBA/government loan

Growth Capital Fundraising Experience:

  • 52% of CEOs reported that capital was relatively easy to obtain.

  • 41% reported that limited sources of capital were available, resulting in a lower investment than planned.

  • 7% reported that they were unable to obtain sufficient capital, resulting in an inability to grow the business.

Equity:

  • Only 2% of companies expect their revenues to decline in 2007; 76% expect at least steady growth, 15% expect their revenues to double, and 5% expect their revenues to triple.

  • 49% of Inner City 100 companies expect they will need additional equity capital to realize their increase in revenues, and another 26% aren't sure.

  • 22 companies have already raised an average of $11.0 million to finance future growth.

Banking Relationship:

  • Inner City 100 companies have been with their current bank an average of 6 years (median 5 years).

Property Ownership:

  • 65% of CEOs report leasing their current location, with 54% under a long-term lease and 11% under a short-term lease.

  • 23% report that they personally own their company's location.

  • 7% report that the company itself owns the location.

More Inner City 100 Numbers:

Last updated: May 23, 2007




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