Sarang Ahuja’s latest post:
Every month over 565,000 startups are launched in the United States. On average they are making a little over $78,000 a year which totals to over $530 billion. However, only 1 percent of this startup money comes from venture capital and angel investors. In fact over 95 percent comes from personal savings, friends and family, or debt.
Pilar Stella, writing for Forbes, explains that if you don’t have the money or the ability to access investors and capital, you are starting on a lot steeper hill than if you have the money to begin with. From the other side, for investors and venture capitalists, you are losing opportunities to find worthwhile ventures and investing in potential winners down the line.
A short term solution is in the works at the moment. New models have been popping up to help increase the amount invested in the new startups. There is a potential shift in the trajectory from only investing in companies to discovering new and interesting funding mechanisms that could have more of an influence in financing streams in the future, which could have a long term impact. Mechanisms like this could disrupt traditional financial models and open up new and different future pathways.
Demand is continuing to grow for new financial and entrepreneurial solutions that are in need of capital. There will be a need for more aligned values as well as collaborations between investors and entrepreneurs to create positive returns which will deliver new sources of funding, and innovations for deploying capital. It is important for these formations to form as win-wins for both sides to help the compounding challenges of the planet and the United States economy, reports Stella. One who has been at the forefront of this innovation has been Frost Data Capital, who are redefining how big data startups are created. For more information click on the link above.
from Sarang Ahuja http://ift.tt/1kiwxsL