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Entrepreneurial Ecosystem (view source)
Revision as of 18:42, 9 November 2015
, 18:42, 9 November 2015no edit summary
===Accelerators===
:An accelerator is a “fixed-term, cohort-based program including mentorship and educational components, that culminates in a public pitch event, often referred to as ‘demo-day’” (Cohen and Hochberg, 2014). The mission of an accelerator, often a non-profit entity, is to provide early stage startups start-ups with resources, mentorship, and networking needed to gain access to venture capital funding. On average, cohorts stay with an accelerator for 3 months cumulating with a pitch to several venture capital investors. (Fehder and Hochberg, 2014)
===Incubators===
==Angel Investors==
Angel investors are “high-net-worth-individuals that make private investments in startup start-up companies with their own money” (Kerr et al., 2014). Recently, angel investors have been pulling their resources together in what are classified as either angel groups or angel funds. In these groups, combined capital allows a combination of larger investments or a more diversified portfolio of investments.
Currently, the U.S. Securities and Exchange Commission [https://www.sec.gov/] regulates the domestic definition for angel investor accreditation [https://en.wikipedia.org/wiki/Accredited_investor#cite_note-sec.gov-8], establishing a level of wealth (income or net worth) in which investors need to prove before being accredited. The Angel Capital Association [http://www.angelcapitalassociation.org], a collective of accredited angel investors in the United States, claims over 13,000 member investors and more than 240 accredited angel groups.
''in progress''
==Research Labs==
Research labs provide housing and resources for research conducted in a wide variety of disciplines. A lab’s classification is determined by the source of funding, either public (or government funded) or private. Research labs can act as part of a university setting or as an independent entity.
==Serial Entrepreneurs and Successful VC-backed Firms==
==Universities==
Universities as a component of the entrepreneurial ecosystem includes not just the practice of innovation by members of the university community, but also the university's interactions with entrepreneurs, spin-outs, technology transfer offices, and other mechanisms of interaction with the entrepreneuria entrepreneurial space.
==Venture Capital==
Venture capital firms provide “privately held 'entrepreneurial' firms with equity, debt, or hybrid forms of financing, often in conjunction with managerial expertise” (Amit et. al, 1998). The typical VC investment will occur during early or middle stages of the startup start-up process in exchange for a minority equity stake of the company, although most specialize in the investment of young entrepreneurial ventures. VC firms typically target startups start-ups in advanced technology sectors rather than service or low-tech businesses, and often specialize in a single vertical such as software or biotech.
A significant benefit of utilizing venture capital is access to large amounts of capital, although in exchange for a small portion of the ownership. Many startups start-ups need multiple waves of VC funding before developing enough to go public, or to be bought out by a larger company. The goal of a VC investment is to provide capital for a startup start-up to gain success in order to make a financial return, consequently VC firms place heavy scrutiny and analysis on potential investments.
''in progress''
