A number of individuals who have great ideas for new products never obtain the funding they are seeking. One reason for this may be that they have created workable product plans but not full business plans. In reality, both are essential parts of starting up a successful organization.
Venture capital may be less accessible for investors in Colorado and other locations outside of the Silicon Valley, according to one report. It found that almost half of every dollar of venture capital goes to Silicon Valley. Los Angeles, New York and Boston receive almost a third of all investments, so there is less than 25 cents of each dollar remaining for the rest of the country. In 2015, five states didn't receive any venture capital investments.
In order to become successful, small business owners in Colorado and across the country need capital, but securing it may be difficult. There is some advice available for entrepreneurs who are just starting out and need venture capital to help them reach their business goals.
Entrepreneurs in Colorado have traditionally found it difficult to compete for venture capital funding with nascent companies located in major business centers like New York, Chicago and Los Angeles, but the growing popularity of crowdfunding could be helping to level the playing field for them, according to a study. Researchers from the University of California, Berkeley and Yale University looked at business startup projects listed on the crowdfunding website Kickstarter, and they discovered that these offerings were often of great interest to venture capital firms.
If you have a good idea for a new business but are unable to secure the seed money to get it off the ground, you might look to angel investors as potential alternatives to traditional business capital funding. Angel investors are often more aggressive than are other investors and often enjoy investing in businesses that are high risk but which offer potentially high returns.
Now may be a good time for startup owners in Colorado to seek venture capital as a source of funding. The Silicon Valley Venture Capitalist Confidence Index for the third quarter of 2016 showed that venture investors are very confident right now. Confidence among venture capitalists has risen by 8 percent since the last index, the largest increase that has been seen since the beginning of 2012.
For many people, one of the most difficult aspects of starting a new business is raising capital. You may have a great idea and a solid work ethic. But without funding, you might never have the chance to implement your business plan.
In September, we wrote about the fact that the world of venture capital tends to have a diversity problem. The entrepreneurs most likely to receive funding are both white and male. The bias against women and minorities might not be intentional, but it is nonetheless a serious problem.
Now is a great time for female business owners to take their companies to the next level. In fact, the Denver Business Journal recently reported that Colorado’s number of women-owned middle market firms is slightly higher than the national average.
There are at least two things necessary to become a successful entrepreneur: A good idea and money to get it off the ground. There is no shortage of good ideas among enterprising Americans, but it can be difficult for many start-ups to get access to seed money.