19/11/2019 Finance makes the world a new place

VC Funding Hard to Find, But 90% of New Start-Ups Do Not Deserve Funding Anyway

Many entrepreneurs are claiming that capital raising has completely dried up. Financial analysts, who watch the growth capital arena remember that there exists only between 10 and 20% of the growth capital currently available, concerning was before the global economic-financial meltdown. That is to say, it can be neat to 90% dried up, and without that investment capital funding, many small business startups would not have the amount of money it will require to develop innovations and concepts and convey these phones market.

Local economic development groups in numerous regions with the country are convinced that this is one in the problems they’re facing at any given time when commercial credit may be highly curtailed. With no funding from banks or growth capital, it can be challenging to produce new jobs inside the private sector. Currently, investment banks can also be tight, plus some large corporations which can be on a lot of money and they are busy buying up companies that are dying for the vine given that they cannot manage to get their second and third rounds of funding through the vc’s.

If you listen to these people talk, you’d swear that this is a financial calamity of epic proportions. However, as the coordinator for any think tank, many in the business plans that can across my desk, I’d say a great 90% of which, aren’t worth Funding anyway, they just don’t deserve the funding, so maybe it’s a great thing that the VCs usually are not wasting cash nonsense. Some say this hard-core attitude is wrong.

Indeed, I completely disagree, because I am a real entrepreneur who had to develop my business a difficult way. There are far too many lazy startup entrepreneurs that are looking to start their company with millions of dollars and after that hoping they can exit in a short time, and then sell on their company or get it public for big dollars. Where’s the significance in this? Worse, I see several Internet start-up companies and social media companies, that happen to be not economically viable and also have never returned a return.

I am personally appalled with the irrational exuberance of days gone by and the lazy attitude of a few of these up-and-coming entrepreneurs. They don’t deserve funding, they just don’t deserve some money, significantly less huge amount of money so they can have a superior burn rate, pay themselves outrageous salaries, only to hide and paddle the shell companies to non-suspecting buyers. Please consider this all.