I like this excellent 3-minute video by Paul Kedrosky, venture capitalist, thinker, and Kauffman fellow. Here’s a summary:

In “Money Game,” Kedrosky breaks down the various methods that entrepreneurs use to raise capital for new ventures, as well as the benefits–and hazards–tied to each. While entrepreneurs’ greatest source of capital is personal savings, Kedrosky says in the video, the second most common type of new business financing is credit cards. He goes on to explain that, despite getting most of the attention, venture capital money is not a common source of funding for startups—and perhaps more importantly, if you don’t need VC money, not to take it.

If for any reason you don’t see the video here, you can click here for the original posted on the Kauffman foundation site at entrepreneurship.org

Tim BerryTim Berry

Tim Berry is the founder and chairman of Palo Alto Software and Bplans.com. Follow him on Twitter @Timberry.