mannerisms

Ruminations on the electronics industry from David Manners, Senior Components Editor on Electronics Weekly.

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.

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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.

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