The financial crisis caused a great deal of damage to the capacity of entrepreneurs to access traditional sources of funding, such as bank credit, credit card debt and home equity loans. And "friends and family," another common source of startup capital, are as financially stressed as the founders themselves.
To help fill the gap in funding, online platforms have emerged in recent years to connect entrepreneurs with investors. These Internet-age "yentas" extend entrepreneurs' reach and enable them to access resources well beyond their geography. As a result, startups in more rural communities or in places with a dearth of venture investors will benefit from the geographic neutrality of the Internet.
To read the full, original article click on this link: Lynn-Ann Gries: Websites Connect Startups With Investors, But Won't Replace The Real Thing
Author: Lynn-Ann Gries
