If you are seeking venture capital for your business, you are confronting different recessionary problems than if you were going to a bank for a loan. Most banks today do not make loans that have a hint of risk anyway.
There is plenty of venture capital around. Funds are actually there. However, the problem is that venture capitalists worry they have little escape opportunities with which to make their eventual profits.
Venture capitalists make their big profits only when they can sell their ownership through a major Wall Street underwriting or with a private sale to a major corporation. And that is now a long shot in today’s recessionary economy.
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