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Business Start-ups look to Online cash advances
New businesses are increasingly looking for online cash advances to finance their start-up. In the past, hopeful new businesses could find venture capitalists to fund them. Investors were looking to join a promising business proposal from “the ground floor” and then take points off future earnings or share ownership. In today’s market, these investors are quickly disappearing. People trying to start new businesses have to share a dwindling number of potential backers and competition is stiff. While networking and trade shows used to be a common place to find angel investors, nowadays that isn’t the case.
Venture Investments fall
The AP is reporting that U.S. venture capital investments fell an amazing 61% during Q1 of 2009. This is the lowest it has been in 12 years and is a sure sign that the economy is shifting. Last year this time capital investments totaled $7.74 billion and this year that number is down to just $3 billion. Only 549 businesses were able to procure funding, down from 997 last year. Even web businesses only totaled $556 million in investments, which brought them down 58% within the past 12 months. The only industry that faired moderately well was software, which is mostly attributed to its ubiquitous need. John Taylor, Vice President of research for the National Venture Capitalists Association confirmed that investors are very choosy now and “the best ideas are getting funded but the marginal ones aren’t.”
Start-ups need to be creative when searching for funding
With venture capital declining, the alternatives for start-ups are few. Lenders are more wary than ever tohand money to new businesses without a history of success. The economy has caused lenders to close their doors to any business that isn’t a sure-thing, and these days those are few and far between.
Many start-ups are looking to online cash advances to bring them the funding they need to get off the ground. While critics say that this is the worst time to venture into a start-up, many Americans are finding, with employment hard to come by, working for themselves is the only viable option. Carol Denning of Plainfield Ohio stated, “I had an education. I had a good job. Then my company felt the hit of the recession and I got laid off. Finding similar work, at the same pay, just wasn’t happening…so I had to take matters into my own hands.”
Denning is not alone. As people look to self-employment, they need to find ways of funding ventures on their own. One option is the online cash advance. It’s a short term loan that can offer people the cash they need to start bringing in revenue.
The big picture
Looking at the nation’s recessive condition, it’s clear to see that people need to work harder than ever to make ends meet. With an expected improvement period of mid-2010, the small business market will have to look to alternative ways of finding financing. Online cash advances are the easiest and quickest option and lenders in this market are open to extending cash. People still want to live the “American Dream” and with the recession, that’s difficult no matter what industry they are in. However, there is still funding out there and an online cash advance may be the answer they need.
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