Startup businesses are the nurseries of job creation, but they need funding to pay salaries, buy equipment, lease space and grow. Unfortunately, the tough economy has slowed new-business funding from a major source - venture capital firms.
"Money is out there, but it's still very hard to get," says Jim Burns, CEO of AssureRx, a Cincinnati firm developing genetic-based therapies. Venture capital companies are less willing to take risks now, Burns says. Raising money takes longer. His company wants to raise $10 million by the end of next quarter. He's confident it will happen, but said funders want real evidence of development these days.
Funding is especially tough for early-stage companies looking for their first $100,000 or half-million in seed money, Conway says. "There's a reason they call it 'venture' capital," he says. "It's unknown." He suggests putting an institutional investor on the board to help boost the confidence of potential funders.
Read entire article by Dan Holthaus
dholthaus@enquirer.com
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