article thumbnail

Why The SBIC Doesn’t Work For Venture Capital Anymore

Feld Thoughts

I woke up to an article in Daily Camera today titled Small Business Administration trying to bring SBIC funds to Colorado. I’m an investor in over 40 VC funds around the world (mostly in the US) and three of them are SBIC funds. Each of the SBIC funds were raised in the 2000 – 2002 time period.

SBIC 142
article thumbnail

A Venture Capital History Perspective From Jack Tankersley

Feld Thoughts

Instead, the driver was the 1983 bull market. Put a willing and forgiving exit market following any investment period and you get spectacular returns. For example, my firm at the time, Continental Illinois Venture Corporation, the wholly owned SBIC of Chicago’s Continental Bank, had many successful investments.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Small business Congress-watch: Three Pending Bills and Why They Matter

crowdSPRING Blog

511: EXCEL Act (Introduced 3/11/2013) The EXCEL (Expanding Access to Capital for Entrepreneurial Leaders) Act amends the Small Business Investment Act of 1958 and seeks to guarantee the payment of securities issued by small business investment companies (SBICs) of up to $4 billion annually.

article thumbnail

What type of capital should you raise, and from who?

David Teten

SBA loans are available through SBA-approved banks and SBIC funds. SBICs make equity and debt investments of size $100k – $10M in qualifying small businesses. A good resource for looking up SBICs is here.” . These options provide you capital and also market validation for desire for your product. .

SBIC 60
article thumbnail

Why Governments Don’t Get Startups

Steve Blank

The plummeting cost required to build a product, the radically reduced time to bring a product to market and the availability of angel capital willing to invest less than a traditional VCs– $100K – $1M versus $4M on up – has allowed these companies to proliferate – and their investors to make money. Google and Android.)

article thumbnail

Should your new VC fund use Revenue-Based Investing?

David Teten

Underaddressed market. We think that this speaks to how large a market there is for RBI and other non-equity based approaches to supporting growth-companies who may not fit the traditional VC mold or be interested in taking venture equity.”. Potentially could use SBIC financing. When It’s a Venture Capital Mark ”.

Revenue 60
article thumbnail

The Secret History of Silicon Valley 12: The Rise of “Risk Capital.

Steve Blank

The Small Business Investment Company (SBIC) Act in 1958 guaranteed that for every dollar a bank or financial institution invested in a new company, the U.S. Like all government programs, the SBIC was fond of paperwork, but it began to formalize, professionalize and standardize the way investors evaluated risk.