The Small Business Administration (SBA) recently announced the start of the Early Stage Innovation Fund, a program that will provide $200 million per year in equity funding “over the next five years,” to “early-stage companies (that) face difficult challenges accessing capital, particularly those without the necessary assets or cash flow for traditional bank funding.”
Ray Leach of Jump Start America argued that the new fund will dramatically increase the amount of capital available to the founders of high potential companies. I disagree. The program’s expected impact, when measured in terms of incremental increase in available capital, companies funded, or jobs created will be very small.
To read the full, original article click on this link: Will the Early Stage Innovation Program Make a Difference?
Author: Scott Shane
