Guest Post: Filling the Black Hole to Rejuvinate the US Economy

Guest Post by author Zak Cassady-Dorion

The black hole of financing, the ‘missing middle’, and the ‘opportunity gap’ all refer to the same thing.  There are a huge amount of entrepreneurs with great ideas and great businesses who are not able to grow sufficiently because they don’t have access to capital.  Properly funded, these businesses could go a long ways to help rejuvenate the US economy.  According to one source, over 700,000 fledgling companies that start in the USA each year don’t qualify for traditional bank, PE or VC financing.  Even for the handful that do qualify, the terms of the deal are often onerous and collateral requirements keep them from bringing their innovative solutions to the market place. (more…)

5 Comments

Revenue-Based Funding by Corporations

There’s a difference between traditional venture capital and corporate venture capital.  While standard VCs are primarily concerned with financial goals (i.e. a high IRR%), corporate venture capital (CVC) groups such as Intel Capital, GE Capital, and the J&J Development Corp. have dual goals: financial and ‘strategic’ value.  CVC investments must somehow assist the core business of their parent companies in…

11 Comments

No more articles

No more pages to load