Main Street deals welcomed on VC platforms

Venture Capital Cross @ – 5/28/2023 – – As traditional funding sources dry up, private companies are seeking alternatives to raise capital.  Also, a growing number of small businesses are also turning to VC portals, which typically include Crowdfunding, as a means to attract capital.  Small mom and pop businesses are sometimes referred to as “Main Street” deals, which could be anything from your local restaurant, gift shop, or even flower store.  Any business that generates revenue or has growth prospects may be attractive to investors.

But it’s not only issuers that are seeking alternatives, investors are seeking returns too, and local is a good place to start.  Some small businesses simply generate a lot of cash sufficient to live, but need more capital for expansion, marketing, open more locations, hire more people, invest in R&D, or other reasons.  Some businesses are scalable with the right capital partners and environment to grow.

80% of jobs are created by startups and small business ventures, it’s part of the reason why the JOBS act was signed into law, allowing Crowdfunding.  Main Street deals, small businesses, local shops and cafes, artisans and craftsman, designers and workers, and other small enterprise fuel the economy and there’s no better issuer than your local family run business.  They are typically passionate about their company, almost always have ‘skin in the game’ and will typically work harder than if they were just an employee because they feel as if it’s their vocation, not just their occupation.  There’s a connection between the small family run business and the business, that doesn’t exist in a publicly traded company, for example.  Call it personal touch, call it what you will – it’s a huge market to be explored.

Commonly, local businesses may look to family, friends, neighbors, and even customers to invest.  Portals like VC Cross are taking this to the next level – it’s all about connecting the dots.

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