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DATA DETECTIVES

How Startup Funding Really Works (Infographic)

Not sure if you should take on outside funding? Check out this example that shows exactly what happens to your ownership stake when you do.
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It never hurts to get a quick refresher on the startup funding process. First, recognize that it isn't your only option, as the bootstrapping approach might better suit your startup. But if outside funding is the route you want to take, it's crucial to understand how, as you take more investment, your slice of the company pie decreases. Hopefully, this means your company is growing, too, so that you wind up with a small slice of a much larger pie.

For an idea of how this process works, follow of the story of a hypothetical startup in the infographic below by Funders and Founders.


Last updated: Aug 14, 2014

LAURA MONTINI | Staff Writer

Laura Montini is a reporter at Inc. She previously covered health care technology for Health 2.0 News and has served as an associate editor at The Health Care Blog. She lives in San Francisco.




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