The Funding Landscape Is Changing. Hustle, Or Get Left Behind.

12 Aug

The ability for private companies to raise capital from private sources has changed dramatically over the years. In the Atlanta, Georgia market, I generally observe local companies attempt  the now traditional route of  raising capital from personal funds or “friends and family” first, then angel investors, and finally, venture capital (if all goes well).

I think many local companies are missing how the landscape of capital raising is changing and are missing opportunities that other areas of the country are successfully using–or are ignoring unique opportunities within the State of Georgia. Here is a sample of how the landscape has changed or is changing….

20 years ago:

Personal funding

Friends and Family

Venture Capital

10 years ago:

Personal funding

Friends and Family

Angel Investors

Venture Capital

5 years ago:

Personal funding

Friends and Family

P2P debt lending

Angel Investors

Venture Capital

3 years ago:

Personal funding

Friends and Family

Donation/Contribution (Kickstarter, Indiegogo,etc)

P2P debt lending

Angel Investing

Venture Capital

Present Day

Personal funding

Friends and Family

Donation/Contribution(Kickstarter, Indiegogo)

P2P debt lending

Angel Investing

AngelList Syndicates

Kiva Zip

Venture Capital

1 year from now:

Personal funding

Friends and Family

Donation/Contribution (Kickstarter, Indiegogo,etc)

Invest Georgia Exemption (intrastate equity funding)

P2P lending

Angel Investing

AngelList Syndicates/Kiva Zip

Invest Georgia Program (Georgia state-based $100M Venture Fund)

Existing Venture Capital

I hear this phrase a lot around Georgia–“There is not enough capital to go around”. That’s old school thinking. Local, regional and national opportunities have increased dramatically in just the last few years. The capital is out there–you have to HUSTLE and think innovatively.

Get there first.

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2 Responses to “The Funding Landscape Is Changing. Hustle, Or Get Left Behind.”

  1. Alyssa August 12, 2013 at 2:47 PM #

    Hello Mr. Massey,

    My name is Alyssa, I’m from the Wisconsin Reporter. We’re writing a story that seems to match your expertise. Wisconsin recently introduced similar legislation to ease restrictions on crowdfunding for the average citizen. We’d like to see how it’s been implemented in other states, and how it may help or hurt the average Georgian.

    If you’d be interested in answering a few questions, please shoot me an email at ahertig@wisconsinreporter.com. I’ll give you my phone number.

    Thank you!

    Alyssa Hertig

    • Knox Massey August 12, 2013 at 7:02 PM #

      Alyssa–
      Sent you an email. Happy to help!
      Knox

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