The death valley of "investment seed capital"
I attended a talk in Prague by Dr. Charles W. Wessner of the USA national academy of science. As is typical in these types of talks in foreign countries, he was claiming about how great the SBA, small business administration, is about helping out small innovative technology companies through grants, etc.I had to smile, because I have tried this route through the SBA, through Texas TETF, etc. Any time you try to get government help as a small company you have trouble if
a) You are not really a large company.
b) You are not at a major university.
c) If you are actually introducing a true novel idea.
But one thing he was very truthful and accurate about is the "death valley" referred to as the Business Angel seed money that sits between the novel technology development and Venture Capital or Vulture Capital as some people refer to them.
Venture capital fund managers will not touch you if your product is not already fully developed and going to market. So you bleed trying to get to that point and then they want a majority of your company, you do all the hard work, and they want the "cream money".
Survival during the seed money area is extremely difficult for truly innovative technical companies. It is a lot easier for people to think about websites, internet investments or the whole .com mentality than to consider investing in technology that revolutionizes things like solar energy electricity generation.
It is fustrating, you are cut severely and your personal life goes down the tube.
Comments (3)
bright days is what always follows the stormy ones!
Starting an innovative business such as yours is much more difficult because you have to convince people of it's worth or viability and as you say, venture capital trusts are not an option.
I've never had my own business, aside from some private teaching work I maintain on top of my employed work, but I was a tax inspector for many years before I started teaching so I know a little about the pitfalls of starting up.