Bootstrapping and Angel.

Given the recent market climate for more ’secure’ investments – its becoming more clear that Venture Capital, as an industry, will need to reform.  Will Silicon Valley see the same meltdown as Wall Street?  Probably not, however, a key point is must VCs are busy supporting existing investments rather than looking for new deals.

Landing venture capital is tough, even in a good economy. But given the ongoing financial crisis, how hard is it for early-stage companies to get funded right now?

Venture capitalists say entrepreneurs face a much higher bar than in recent years. They liken the downturn to a period of natural selection, when weak businesses will fail but strong ones will prosper. New companies that prove themselves now, they say, are better positioned to thrive when the economy recovers.

Proving out the model, running a slim and refined business without alot of money will prove, to the investment community, that the management team is capable and strategy is solid. 

Now, the conversation with the investors will be – ‘are you going to be exponentially more successful with my money’ rather than ‘are you going to be successful with my money’?

I will try to provide over the next few weeks some tips and techniques in bootstrapping.

Tags: bootstrapping, venture capital, angel financing, entrepreneurial ventures, economy