The recent economic downturn has led to significant changes in financial lending patterns, with banks now showing a reluctance to issue loans for new business start-ups. This pattern has been replicated across venture capital firms that now choose to target their investments at later-stage companies.
As a result, many entrepreneurs are struggling to receive start-up funding for potentially profitable business ventures. They are now, increasingly, turning to alternative investment channels.
For American economists and entrepreneurs alike, the need to identify alternative investment channels has thus become crucial to generating economic growth. Though angel investors have long been recognized as a means for financing business start-ups, supply is now failing to meet demand. This is particularly the case amongst entrepreneurs who lack business connections. Thus, in a bid to boost angel investment, a new generation of angel investors is being sought out.Read More about Financing the Entrepreneur: American Initiatives to Attract Angel Investors