If you were to look under the hood of any big-name IPO these days – such as LinkedIn, Pandora, and someday, Facebook – you’d see a highly sophisticated coordination of capital sources that fueled each to that highly coveted spot: Seed or “Angel” money that got the idea off the ground was followed by early-stage venture capital investors who percolated the company to viability, making it attractive to up-round VC investors and maybe some “mezzanine” financiers. It’s all very integrated, deeply “vertical” and it’s why the $50 billion-a-year U.S. venture market is the envy of the world.
Contrast that with the $10 billion raised for social enterprises that are trying to solve stubborn social problems like food security, safe drinking water, or energy access and maybe one day make a profit as well.
To read the full, original article click on this link: How a VC-Style Investment System Can Support a More Just and Humane World | Xconomy
Author: Thane Kreiner
