STARTUP FUNDING
The fact that only 40% of the surveyed hubs offers funding to startups denotes the high diversity in the type of support that such organisations provide. Equity investment ( 30% ) remains the most common type of funding although, as explained, hubs are o en endowed with donor or sponsor money which is used for funding - o en through competitions or at the end of an incubator or an accelerator programme. This type of cash injections are typically in the form of grants or non-equity ( 23% and 13% ). One fi h of funding is also in-kind and it is not uncommon to see mixed funding round including in-kind and equity investment. Finally, a small proportion includes debt financing ( 12% ).
STARTUPS FUNDED PER YEAR
TYPE OF FUNDING PROVIDED
191 startups funded by the surveyed hubs in 2018
Non-Equity
13%
40
Grants
23%
35
22%
In Kind
30
25
20
Debt Finance
12%
15
10
Equity
30%
5
0
FUNDING PROVIDED PER STARTUP
TOTAL INVESTABLE CAPITAL
$10,000-$19,999 $20,000-$49,999 $50,000-$99,999 $100,000-$249,999 $250,000-$499,999 $500,000+
$500,000-$999,999 $1,000,000+
$250,000-$499,999
$100,000-$249,999
$0-$999 $1,000-$4,999 $5000-$9,999
$50,000-$99,999
$0-$49,999
0
5
10
15
20
0
5
10
15
20
25
Hubs
Hubs
EQUITY INVESTMENT IN STARTUPS
40% of the surveyed hubs buy equity shares in the supported hubs.
Out of the 37 hubs in the sample that provide funding to start-ups, the majority provide investments below $20,000 and about a third of the surveyed hubs that invest for equity shares in the companies they support take between 10 and 14% equity.
<5% 5-9% 10-14% 15-24% >25%
BRITER BRIDGES
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