investment capital...

Developing Additional Sources of Investment Capital

Knowledge-oriented companies will migrate to, and cluster in, areas with sufficient investment capital to support their start-up and rapid-growth needs. So critical is the need for access to capital, that without it an area will never retain its most promising companies or attract entrepreneurs to be near available financing sources. As the chart below shows, companies need different types of risk capital at different stages of growth.

EngenuitySC is working with Columbia area individuals, governments, businesses and non-profit groups to increase the number of investment capital resources available to entrepreneurs and rapidly growing knowledge-oriented companies. Our legislature and business community have also worked hard to establish the venture capital act and the industry partners act to assist start-ups from a financial standpoint.

Type and Source of Financing	Timing	Amount	Stage
Pre-Seed Capital Founder Family & Friends Individual Angels	Year 0	Less than $250,000	R&D Conceptual
Seed Capital SBIR Angel Networks Venture Capitalists	Year 0-2	More than $250,000; less than $2 million	Start Up
Later Stage Capital Venture Capitalists Non-Financial Institutions Banks	Year 2-5	More than $2 million	Expansion
Stock Market IPOs & Equity Markets	Year 5+	Varies	Self Sustaining

Source: The Keys to Growth in the New Economy: Investing in Discovery, Engineering, and Entrepreneurship.

For more information on investment capital resources, please visit our capital resource section.