Since 2012, the JOBS Act has evolved to generate increase investment in Emerging Growth Companies. These companies can now take advantage of a full list of provision changes, some of which have been briefly discussed in, “JOBS Act Opens Up New Opportunities To Raising Capital”.
Moving forward, there are a huge number of sectors that feel left out as capital formation can be more difficult due to their high risk nature. The Tech Startup sector is one that has suffered, and unfortunately, thousands of startups have failed because they were unable to obtain the necessary capital to grow.
Founder Equity, a recent presenter at the FSXinterlinked conference in Westlake Village, believes the following is the true reason why startups fail:
“Startups rarely fail because they can’t get their product built. The fail because they’re unable to make enough progress to access the kind of capital needed to assemble an amazing team.
Modern innovation is complex, and it’s not enough to have a small team with core skills. But there’s no way to raise enough money early on to assemble the kind of team that leads to success.
Even the few who achieve success, find that without the right team, it takes years. By then, their equity is a mere fraction of where it started.”
Venture backed startups account for 21% of GDP and 11% of jobs in the US. However, for structural reasons fund investors aren’t seeing the returns they should expect.
How can investors capture the extraordinary potential for returns in the tech industry?
FounderEquity.com has introduced an investment approach that reduces risk, addresses structural weaknesses of the venture industry, and speeds asset value creation. By investing early, and injecting their team of 50+ experts, Founder Equity improves the odds of success for entrepreneurs, and provides a superior investment vehicle for investors. With a no-fee structure, and a close alignment of interests between the fund operators and their investors, it also offers far better efficiency.
To learn more, we encourage you to check out Founder Equity on interlinked.com