What is the average amount of money people invest (of their own money) into a new startup?

[Kerwin]

I'm curious if any accountants (or others of course) could say what the average amount of money people spend on their startups? This is excluding loans, credit, grants and venture capital.

 

[Mark T Jones]

Somewhere between £1 and £3 million.

 

[Kerwin]

Somewhere between £1 and £3 million.

That is not an average . But yeah I get your point.

 

[Mark T Jones]

That is not an average . But yeah I get your point.

True, it's a spread

I couldn't even guess at a mean average

I suspect the modal average is less than £100, but most in that range will do very little and will fizzle out within 18 months

 

[JEREMY HAWKE]

Most people come on here asking questions without a pot to pis in so I cant imagine the directors investment being all that high

 

[MyAccountantOnline]

I'm curious if any accountants (or others of course) could say what the average amount of money people spend on their startups? This is excluding loans, credit, grants and venture capital.

It depends on so many factors, as an accountant looking after new and small businesses I see businesses start up ranging with capital of zero to about £250,000. I couldn't guess at an average.

 

[Kerwin]

Thank you all. Interesting.

 

[pentel]

This is excluding loans,

A sensible way to set up a limited company is to have a low share capital and for the shareholders to loan an amount to the company.

I am aware of a company where the share capital was £100 but the shareholders / directors loaned the company £500,000

 

[WaveJumper]

Sure I havre read in the past the average cost of starting a business in the Uk was around 23k anything other than that it’s a bit like how long is a peace of string.

 

[numbersrule]

It also depends whether you are asking for the average 'permanent' investment. I suspect many of the examples of loans given above may have been paid back by the companies if they turned out to be successful which means the only investment is the share capital.

Some interesting averages in the link below.....

How much does it cost to start a business in the UK? | Tide Business

Explore common business startup costs, how much cash you’ll need to get started and ways to limit costs to boost your chances of long-term success.

www.tide.co

 

[HFE Signs]

I did it the old fashioned way, started small with just £2000 and re-invested, never had any investors or loans. Grew the business steadily over a long period (started in 1996)

 

[Ozzy]

Seeing this question reminded me of this meme;

What did it cost?

Discover the magic of the internet at Imgur, a community powered entertainment destination. Lift your spirits with funny jokes, trending memes, entertaining gifs, inspiring stories, viral videos, and so much more from users like BigginsIII.

imgur.com

I'm not sure there is an average despite that research by CompanyWarehouse of their clients, the number used in the Tide article linked above. From personal experience and some friends who run their own businesses, generally, it is as per the meme above - everything.

 

[Paul Kelly ICHYB]

Too many I come across try with £0! That's not because they are bootstrapping, it's because either they do not have it or do not want to risk their own money!

 

[HFE Signs]

Too many I come across try with £0! That's not because they are bootstrapping, it's because either they do not have it or do not want to risk their own money!

Yes, it's amazing the difference in effort it makes when people use their own money!

 

[MOIC]

First question….. what’s the business?