![]() Seed Funds - Provide capital to very early stage companies. In some, but not all cases, the technology was developed while the founders worked at the university.Ĭorporate Funds - Provide capital to companies that are developing products or technologies that have a strategic fit with the corporation’s current or future plans.Īccelerator Funds - Provide mentoring, co-working space, workshops, and potentially investment capital to help accelerate the growth of very early stage companies. University Funds - Provide capital to companies that were founded by members of the university community (e.g. Social Impact Funds - Provide capital to companies or organizations with the purpose of generating measurable returns for social outcomes alongside financial returns. New Sources of Equity Capital for Early Stage Companies Today, in addition to traditional tech VCs and angel investors, there are a wide variety of capital sources for startup entrepreneurs to tap into. Most assumed they would need to pitch venture capitalists, though a few knew or discovered that they could get their seed funding from angels. When Christopher and I began investing in early stage companies almost two decades ago, entrepreneurs trying to build high-growth investor-financed companies had a limited number of places to go for equity capital. Major US centers like Silicon Valley, Boston and New York still hold the title for most dollars invested (and returned), but smaller cities all over the globe are becoming hotbeds of entrepreneurship with their own local sources of investment capital. There’s been an explosion of entrepreneurship in many parts of the world. And historically, most of the companies - and their investors - were relatively concentrated in a handful of locations in the US and other developed countries.īut much has changed over the last few decades. These sources of capital were specialized in making investments in fast growing technology and life science companies because of the potential for large investment returns. Historically, much of that capital came from individual angel investors or from venture capital firms. However, a meaningful percentage of high-growth-potential startups are financed by outside capital provided by investors. fund them with a combination of personal resources and revenue/credit from the business). The majority of entrepreneurs must bootstrap their businesses to success (i.e. And, wherever you find entrepreneurs, you will find investors looking to finance those entrepreneurs. Whether you are located in a hotbed of technology like Silicon Valley, a huge emerging market such as China, or in the ancient city of Byblos, chances are you will stumble upon a collection of entrepreneurs working to create new, vibrant companies. Travel to almost any part of the world these days and you are likely to run into clusters of entrepreneurship just like you will find at Neopreneur. What dramatic changes to our cultural landscape are we witnessing when the tourist economy in an ancient city like Byblos features a community to support entrepreneurship? So, you can imagine my surprise when I stumbled upon a sign for Neopreneur, a local co-working space that provides mentorship, workshops and meetups for entrepreneurs. No longer a center for shipbuilding or trade on the Mediterranean Sea, the city now focuses on hosting visitors from around the world via a largely hospitality and service-based economy. Today, Byblos is best known for its ancient ruins and it is the tourist trade that primarily supports the community. Entrepreneurship was alive and thriving in Byblos over five thousand years ago! Built as the first city of the ancient Phoenicians, Byblos thrived through many millennia under the rule of the Phoenicians, Egyptians, Greeks and Romans, and was a wealthy city known for shipbuilding and trading. This ancient city was first settled as far back as 8800 BC, and is considered the oldest continuously inhabited city in the world. ![]() During a recent trip, I had the occasion to visit Byblos in Lebanon. Whether traveling for business or pleasure, I enjoy visiting ancient historic sites around the world. Note: This article is the first in an ongoing series on venture fund formation and management. To learn more about managing a fund, download this free eBook today Venture Capital: A Practical Guide or purchase a hard copy desk reference at.
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