community
Finance & Banking
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:
- 81% - Personal assets
- 27% - Loan or line of credit
- 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:
- 81% - Loan or line of credit
- 32% - Personal assets
- 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.
