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The same is true in the non profit world. Money begets money.
This financial gap is already being filled. A couple of my business partners have been having a lot of success serving this market. Instead of acting as a VC and taking a portion of the company, they raise capital in the form of secured corporate credit, taking a small up front fee. This works out nicely for both parties, giving the entrepreneurs the capital needed to grow in that critical stage without having to give up ownership, and still providing a healthy profit for the financiers. If you happen to know any struggling entrepreneurs, I would be happy to introduce them to someone who could help.
Commenting by HaloScan
