Start-ups are risky pursuits. Most entrepreneurial successes are against-all-odds successes and are almost impossible to predict. Data suggests 9 out of 10 startups fail. For every one startup success like Uber, there are countless fickle failures all over the globe. This risk disposition puts them at odds with banks that are customarily risk-averse institutions restricted by usury laws to limit interests. Banks invest in hard assets. The new IT and disruptive technology businesses don’t need much of them. Moreover, to access the investment banks or public market, a company needs to show sales of around USD 15 million, assets of around USD 10 million and justifiable profit history.

So how does a new-age entrepreneur with little hard assets and skimpy revenue history find funds for her ideas?

https://www.uspec.org/blog/venture-capital-and-private-equity-basics-for-aspiring-investment-professionals