By guest author Karen E. Wilson A new book from the Organisation for Economic Co-operation and Development (OECD) looks at seed and early stage financing for start-up companies and notes the impact of the recent economic crisis. With banks reluctant to provide loans to startups and venture capital firms preferring to invest in later stage
Sramana Mitra: Hi, Scott. Tell us briefly about your background. Scott Kosch: I studied economics and psychology at Claremont McKenna College, prior to trying out management consulting, and then business school at Wharton, but all along I was interested in entrepreneurial pursuits. I’ve worn many hats: company founder, advisor, and investor. My passion has remained with
By guest author Irina Patterson Irina: How many investments do you have in your portfolio right now? Liz: We have nine. Irina: What stage of business development you usually invest in? Liz: Early. But they have to have a customer and the product. We do not do R&D. And frankly, the customer doesn’t necessarily have
By guest author Irina Patterson Liz: You know, one of the things that happens in a bad economy is if a company is doing fairly well, sometimes the entrepreneurs don’t want to exit. Because they’re comfortable. They get their salary, they’re making money, the company’s doing OK . . . so it’s a little harder
By guest author Irina Patterson Irina: Do you have any sector preference? Liz: No, we just want to invest in companies that we can exit and make money in. We just don’t have the luxury. Now, I will tell you, we don’t invest in things we know absolutely nothing about. We don’t invest in real
By guest author Irina Patterson Irina: On average, from all the sources, how many pitches do you receive a month? Liz: I’ve been keeping a running tab this year just out of my own interest, and I’m talking to about 20 entrepreneurs a month. But when our fund meets, we usually have wind it down
By guest author Irina Patterson Irina: So, not all of your fund investors are based in Montana? Liz: No, five are not. Some are here part of the year, and they really wanted to be part of this, and that was part of the discussion when we formed the fund. For example, of the 33
By guest author Irina Patterson Irina: Right. Do you see any issues in the angel ecosystem? Is there anything that can be improved? Ray: I think the key thing is, investors like us have to get involved, to educate entrepreneurs. For example, Silicon Valley is the best ecosystem in the whole wide world. And for