| Entrepreneurs
often cite the availability of capital as the
single most important component of starting
a business. Venture capitalists tend to respond
that a great business plan and a strong team
are more critical, and increase the likelihood
that a company will receive funding. Both are
accurate. The availability of seed and venture
capital and debt financing is a key factor for
growing local companies from an idea to a successful,
high-growth organization. It also can be helpful
in attracting technology-based companies to
the state. By the same token, young companies
need management assistance from the investors
who back them. Scientists and engineers who
have developed a new technology know their technology
well, but may not be prepared for the marketing
and business management that is required for
a company to succeed.
Louisiana must search for strategies that
make all levels of capital (seed, early stage,
mezzanine, etc) available, that attract risk
capital investors from out of state, and that
create networks of investors who openly assist
and support entrepreneurs. |
