to page content
to site navigation
Explore the Entrepreneurship.org Resource Center to find resources. Designed with entrepreneurs in mind, our resource center allows you to find materials to grow great ideas.
April 23 (Bloomberg) -- Lobbyists for startup investors say they are close to a deal with Senate staff and state regulators to remove curbs on angel investing from the Senate’s financial reform bill.
The possible compromise would require angel investors, who buy stakes in startups in private offerings, to have a net worth of $1 million, instead of $2.3 million as proposed by the Senate bill, said Marianne Hudson, executive director of the Angel Capital Association in Overland Park, Kansas. It would also scale back plans to let states regulate angel deals, she said.
“We’re close to amendments that are good for entrepreneurs,” said Hudson.
Don’t get Randal Charlton wrong. The executive director at the TechTown business incubator in Detroit is thankful for a recent announcement of $5 million coming his way to help graduates of his FastTrac business training program launch their companies. But, he says, look at it this way: The money, granted by the New Economy Initiative, a Detroit-area philanthropic partnership, is not being thrown at comfortable entrepreneurs. This is, essentially, aid to the unemployed. And, as such, $5 million barely scratches the surface.
Many of the entrepreneurs to be helped by the First Step Fund, the entity created by NEI’s $5 million investment, are not launching startups because it seems like a promising thing to do. They have nowhere else to go, Charlton says. Their former jobs in the auto industry are gone, never to return. Their choices are to leave the state or try to create their own jobs in Michigan.
So far this year both the number and size of deals by venture capitalists are down over the final quarter of 2009.
A total of 681 deals for $4.7 billion were completed by VCs in the first quarter of 2010, according to a MoneyTree Report released by the National Venture Capital Association and PricewaterhouseCoopers. That dollar amount is down about 10 percent over Q4 2009, but up nearly 40 percent over the same period last year.
Yahoo! and Egypt-based NGO Nahdet El Mahrousa have launched a campaign called ‘Social Innovation Starts with YOU' that hopes to inspire and motivate young Egyptians to be social entrepreneurs.
The campaign is in line with the U.S. Presidential Summit on Entrepreneurship that will take place on April 26 - 27, 2010 in Washington D.C., where Yahoo! co-founder Jerry Yang will deliver a keynote speech on how the Internet can positively transform lives, societies, and economies in Arab communities.
Candace Fleming’s résumé boasts a double major in industrial engineering and English from Stanford, an M.B.A. from Harvard, a management position at Hewlett-Packard and experience as president of a small software company.
But when she was raising money for Crimson Hexagon, a start-up company she co-founded in 2007, she recalls one venture capitalist telling her that it didn’t matter that she didn’t have business cards, because all they would say was “Mom.”
Another potential backer, reports Claire Cain Miller in The New York Times, invited her for a weekend yachting excursion by showing her a picture of himself on the boat — without clothes. When a third financier discovered that her husband was also a biking enthusiast, she says, he spent more time asking if riding affected her husband’s reproductive capabilities than he did focusing on her business plan. Ultimately, none of the 30 venture firms she pitched financed her company. She finally raised $1.8 million in March 2008 from angel investors including Golden Seeds, a fund that emphasizes investing in start-ups led by women.
Not so fast, Martha Stewart.
OK, you're special. You are talented and one of the best at what you do. But that doesn't mean that you're equipped to run your own business--even one within a field or industry you've been working in or following for years.
To wit: 627,200 new businesses opened in the U.S. in 2008--the same year 595,600 businesses shuttered and 43,546 filed for bankruptcy, according to the U.S. Small Business Administration (SBA). Likewise, 30% of small businesses fail within the first two years and half close shop within five years, according to the SBA.
The fact of the matter is that far too many people launch their own companies for all the wrong reasons and without the tools it takes to succeed. Before handing in your notice and signing a lease on an office, it's imperative you take a hard look at yourself in the salaried eye and ask yourself a few critical questions that could mean the difference between a fulfilling life as your own boss and speed-dialing a bankruptcy lawyer.
Who is the real entrepreneur? What does it mean to be self-employed? Dane Stangler examines this question and what it means to be an entrepreneur during these tumultuous economic times.
At the University of Miami a few weeks ago, I had the opportunity to attend an entrepreneurship class with roughly 40 students. Most of them were juniors and seniors, joined by a small number of law students. The course had so far covered the theoretical literature on entrepreneurship, but on this particular day all the students wanted to talk about was their own futures.
Some people are born rich, but it is the self-made billionaires who inspire people more than anybody else. While most entrepreneurs won’t end up in the 10-digit club, there are lessons to be taken from these elites.
It sounds like a privacy breach waiting to happen: Take some of your company's most classified information — employee records containing Social Security numbers, salaries — and put it on a bunch of remote servers that let you access the data via the public Internet.
With pink-slip taxes increasing, more small-business owners may be motivated to appeal claims for unemployment benefits filed by former employees who quit or were fired for cause—but such appeals can sometimes backfire.
U.S. employers are required to make regular tax contributions toward unemployment insurance. They're taxed at a rate that varies by state and the size of their payroll. That rate can increase as a business lays off more employees.
Want to get connected? Sign up to receive regular news, polls and updates from The Kauffman Foundation.
A robust online curriculum for entrepreneurs.
Explore Founders School >
A network of U.S. cities facilitating a weekly entrepreneur education program. Go to 1 Million Cups >
Whether you are starting or growing a company, FastTrac will help you live your dream at each stage.
Get started with FastTrac >