I feel the need to expand on cintrix's good answer
It depends on what you mean by "due to lack of funds." Penny stocks do have a higher volatility, and therefore an opportunity to get a higher return in a shorter period of time, but having only a small amount to invest isn't a reason in itself to start with pennies. You can buy and sell as much or as little $ volume in large cap or nano cap stocks, with the exception of those whose shares are in the $100s.
There have been some huge runs lately in penny land, especially with the MJ stocks, but as someone who is new to pennies, I urge you to be careful. If by "lack of funds" you mean you have only a small amount of extra income in general, I'd be careful. You can just as easily lose those funds as make a large return, and the risk is especially high if you aren't familiar with how these trade. The general idea is only trade with as much as you are willing to lose.
Also, the risk varies from stock to stock, between OTC and pink sheets, and with the varying floats and market maker activity. It takes a bit to get familiar and comfortable, so it may even be helpful to trade on paper first, to get your bearings.
I don't mean to frighten or discourage you, just to give you some perspective. The first "penny stock" I invested in, I lost most of my initial. Luckily, I started small, but I really had no idea what I was doing. Once you get your bearings, it can be much more fun, engaging, and profitable than exchange investing.
Also, you can also get into a trap with "beginner's luck" per se, where the first one is a winner, and it gives you a dangerous false sense of security and confidence. Just keep yourself grounded, and try to learn everything you can.
All just my opinion, but I felt like I needed to expound. Best of luck to you.
