The Democratisation Of Funding

The democratisation of funding means that entrepreneurs can pitch for funds to a wider variety of potential backers than ever before, writes Linda Bernardi in the Washington Post.

Bernardi lists nine sources of funds beyond the usual VCs:

1. Corporations making equity investments in start-ups.

2. Corporate venture funds.

3. Angels and angel consortiums.

4. Super angels – individuals rich enough to fund a start-up on their own.

5. Equity investment funds.

6. Boutique VC firms.

7. Accelerators and incubators.

8. Crowdfunding platforms.

9. Global money. Funds from non- traditional sources all over the world.

Related Tech News

4 Comments

  1. david manners
    July 23, 2014 18:10

    Yes that’s so typical of VCs IMHO Mike, they tend to have very high opinions of themselves.

  2. Mike Bryant
    July 23, 2014 17:38

    I think it is – but startups don’t have unlimited time so I was offering some advice on which ones to prioritise.

    Interesting talk by some VCs last week – basically if you don’t know us already don’t bother.

  3. david manners
    July 22, 2014 17:47

    Oh dear, I had hoped that this was a helpful trend, Mike

  4. Mike Bryant
    July 22, 2014 17:33

    1. Rarely
    2. More Often
    3. Usually only if have a common friend or associate
    4. Richard Branson ? You have to have worked for him first but he will do it.
    5. Very rarely at early stage
    6. Very few of those around
    7. Often a waste of time. They promise money but rarely deliver, though they can supply temporary premises and legal assistance which has some value.
    8. YES – this is the biggest change. An old associate has raised over $30m ths way. I don’t think it will be long before we see a state of the art IC design funded this way.
    9. This route was good a few years ago but is drying up.

Share your knowledge - Leave a comment