On the demand side, the number of firms seeking funding far outnumbers the funding available, but research reveals key characteristics of successful. Academic pairing, interdisciplinary teams, and science-based ventures tend to find the most success. On the supply side, there are broad sources of financing, including angel funds, initial coin offerings, and government sponsored initiatives, but there’s no dominant approach. Dedicated financial institutions that invest in startups provide financial and administrative support, but also pose challenges to firms. They can create barriers to entry and asymmetric information, and impose difficult timelines, fees, and restrictions on a firm’s operations.
For further reading: “What Do Entrepreneurs Pay for Venture Capital Affiliation?”
I’ve attached the slide deck [PDF] for ease of access.
While Professor Hsu focused on the existing financing infrastructure, he is available and interested in talking with staffers about ideas regarding the future direction of financing policies. Please reach out me at email@example.com if you would like to connect with Professor Hsu.