The answer is the zero, of course! Any company with a compelling enough idea can be chosen to present. However, financing plays factor into how well a company performs. Over the previous decade, the amount of money it takes to start a company has decreased dramatically. I went on the TechCrunch50 website and decided to put all the funding data into Excel.
The TechCrunch50 Finalists are the cream of the crop, the best companies of over 1000 applications. Forty-two of them provided how much investment they took, while ten did not. Let’s look at the stats.
- 16 of the 42 reports took $300,000 or else in investments.
- 21 of the 42 reports took $500,000 or else in investments.
- 27 of the 42 reports took $1,000,000 or else in investments.
- The average amount of funding of the 42 reports was $1,499,523.81
- The lowest amount of funding was $40,000. (Though possibly 0 for the 10 companies that didn’t report)
- The largest amount of funding was $10,700,000.
- The total amount of money invested is $62,980,000. Wow.
Slightly over half the companies took in $1,000,000 or less in funding. The better news is that over a quarter of the companies only took in $300,000 or less. I would say this is pretty impressive for the level of caliber of these companies. Most of these companies are probably angel-backed. In my opinion, the best thing to do is to take as little money as possible. I think the data serves as a good comparison to curious entrepreneurs on what the landscape is like.
Here is the list of companies:
While money is important, execution and team dynamics are even more important. The determinant of whether or not these companies will succeed in the years to come is how well they can iterate. Launching, at however big the event, is only the beginning. Let’s see if they can turn the $63 million dollars invested into $630 million. A couple of these companies should have billion dollar potentials. Right, ev?
Edit: The 10 companies which didn’t report funding data are BlahGirls, Yammer, Connective Logic, Burt, Mixtt, me-trics, mobclix, Postbox, GazoPa, and iamnews.