Every entrepreneur needs to raise capital at some point in time, as a business requires a large cash injection to get off the ground and even survive long-term. Crowd-funding, social media and other new avenues to getting media attention and capital make it is easier than ever to launch a startup, but investment capital has become increasingly competitive as a large sea of companies vie for the attention of angel investors and venture capitalists. Crowdfunding platform Fundable
reports that investors or venture capitalists fund less than 1 percent of startups, whereas 57 percent of startups receive loans or credit, and another 38 percent are financially supported by family or friends. The issue is not that investment firms don’t want to invest in startups, or that they lack the capital, overall the larger problem is that many companies just aren’t a suitable candidate for outside investment. Here’s how to determine if you startup is.