Entrepreneurs May Still See Funding From Private Investors
Written by Ken Gaebler
In this tough economy, entrepreneurs are struggling to raise money. Capital for early-stage companies, however, is starting to flow again.
Most people know that the state of the economy makes it hard for small businesses to get funding from traditional banks, but it has also become harder to find venture capital investments.
But there are still opportunities available for some entrepreneurs.
BusinessWeek notes that some small businesses startups have had success in receiving funding from private investors.
Mark Heesen, president of the National Venture Capital Association says he has seen an increasing number of companies in the early stages.
"Valuations are good right now, so I'm seeing VCs interested in shepherding along these early-stage companies that can't get traditional financing, and not only in the typical entrepreneurial hotbeds but all around the country," he told the magazine.
The stimulus plan may also be good news for small businesses that are "shovel-ready" and get them the attention of private investors.
"We like it when we see companies that have already been commercialized or can get aid from the stimulus package," Raulee Marcus, a member of Tech Coast Angels, told the news provider. "We're calling them 'stimulus-ready' companies, because having some wind at your back is very important today."
However, the stimulus package may help some small business owners receive microloans from the Small Business Administration, which received $30 million for its microloan program.
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