« Victors & Spoils – the First Ad Agency based on Crowdsourcing Principles | Main | Outrageous transparency: publicizing tax data in Norway »
Wednesday
Oct282009

A venture capital alternative for early financing offered by LaunchCapital

Access to loans and funding for entrepreneurial small businesses is abysmal right now. Low access to credit at reasonable terms due to the financial crisis and limited action by venture capital firms are creating few opportunities for entrepreneurs to gain early funding for their ventures. Perhaps its due to regulatory challenges, but there has been surprisingly little innovation in financing such activities.

I've been interested by the possibility of p2p loans to help fill some of the gap, but as a personal loan maxing out at $25,000, this is an option really only for a small set of small businesses who already making money. Crowdfunding like they are doing at Trampoline Systems is perhaps even more exciting, but as I know from a nice lunch that I had with founder and CEO Charles Armstrong, the regulatory challenges took months to sort out and that was in the UK.

With this backdrop, the new offering of LaunchCapital is particularly welcome. The firm announced yesterday that they have launched a new small business opportunity that recognizes the current funding challenges and VC focus on hi tech and biotech, seeking to empower "main street" entrepreneurs. Through the past year of developing the product, they have come to three major insights that describe the businesses that they seek to serve:

  1. Main Street businesses are not interested in taking on expensive equity at the seed stage of their development
  2. Main Street entrepreneurs have little trust in venture capital
  3. Main Street entrepreneurs take on personal risks that are uniform regardless of industry or experience

Their product is a small business loan up to $150,000, with a small common equity ownership of less than 15%. I would be interested to know if entrepreneurs see this offering as an exciting new option.

PrintView Printer Friendly Version

EmailEmail Article to Friend

References (81)

References allow you to track sources for this article, as well as articles that were written in response to this article.
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    Response: Waldo
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    Response: Penis Pills
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    Response: Prezzi pazzi hack
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    Response: quest bars
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    Response: nike bot 2014
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    Response: m88
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    Response: Namita Chittoria
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    Response: Keir Majarrez
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    Response: Keir Majarrez
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    Response: Red Payments
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    Response: blogigo.com
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    Response: auto note buyers
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    Response: simpson hangers
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    Response: wood garden bench
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    Response: resep masakan ayam
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    Response: gizli kameralar
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    Response: www.dcwillizi.dz
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    Response: note 7
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    Response: Steve Chan IBM
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    Response: Critical Thinking
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    Response: Wallpaper
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    Response: kutu tasarimlari
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    Response: international
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    Response: no income mortgage
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    Response: afrikk pap
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    Response: Bitumen Tiles Roof
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by LaunchCapital
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by
  • Response
    Response: Car repair garage
    - Transcapitalist - A venture capital alternative for early financing offered by
  • Response
    Response: mario
    - Transcapitalist - A venture capital alternative for early financing offered by
  • Response
    Response: buy viagra online
    - Transcapitalist - A venture capital alternative for early financing offered by
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by
  • Response
    Response: cbd oil benefits
    - Transcapitalist - A venture capital alternative for early financing offered by
  • Response
    Response: you could try here
    - Transcapitalist - A venture capital alternative for early financing offered by
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by
  • Response
    Response: Poker88
    - Transcapitalist - A venture capital alternative for early financing offered by
  • Response
    Response: WedeQQ
    - Transcapitalist - A venture capital alternative for early financing offered by
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by
  • Response
    - Transcapitalist - A venture capital alternative for early financing offered by

Reader Comments (3)

Suboptimal choice of a company name, with the domainname without the dash taken by someone else

October 29, 2009 | Unregistered CommenterWiseclerk

@Wiseclerk : Good point. I feel the same way about People Capital's domain name: www.people2capital.com

October 30, 2009 | Registered CommenterMelody

Is there a limit to the valuation they'll consider?

October 30, 2009 | Unregistered CommenterTim
Member Account Required
You must have a member account on this website in order to post comments. Log in to your account to enable posting.