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Despite Crowdfunding Hype, 87% Of New Businesses Are Funded By Friends And Family

Kickstarter and other crowdfunding sites may grab the headlines about how startups are funded. But an overwhelming majority of new businesses--87%--still get a financial lift from family members, work colleagues or friends and neighbors. Median nut: $15,000. So says a report commissioned by Babson and Baruch colleges. Young folks disproportionately (70%) pitch in cheap or free labor, and a place to park or crash, enabling new entrepreneurs to bank cash. Here's a surprise: It's not only older friends and family ponying up. Almost half (44.5%) of all backers are 18 to 34 years old.