logo
ENFRع
#

Latest news with #venturecapital

How AI entrepreneurship and community capital are reshaping economic development for all
How AI entrepreneurship and community capital are reshaping economic development for all

Fast Company

time2 days ago

  • Business
  • Fast Company

How AI entrepreneurship and community capital are reshaping economic development for all

The Fast Company Executive Board is a private, fee-based network of influential leaders, experts, executives, and entrepreneurs who share their insights with our audience. BY Listen to this Article More info 0:00 / 7:31 As economic development leaders, we stand at an inflection point. The traditional extractive economy that concentrated wealth in Silicon Valley and major urban centers is giving way to something far more powerful: a regenerative economy that creates value while restoring communities, ecosystems, and human potential. This transformation is gaining traction in rural communities, women-led startups addressing climate change, and businesses owned by individuals of color using AI entrepreneurship to solve challenges legacy institutions have overlooked. The question is not whether it will materialize, but how we'll lead it. Women-led businesses receive only 2.3% of venture capital funding, despite delivering higher returns on investment. Rural entrepreneurs encounter a $20 billion funding deficit compared to their urban counterparts. Businesses owned by Black and brown individuals are more than twice as susceptible to loan denials than white-owned businesses with comparable financial profiles. Nevertheless, these marginalized founders are driving innovation in the sectors that hold the greatest significance for our economic future. Research shows that 28% of Black entrepreneurs are early adopters of new technology, compared to only 20% of non-Black entrepreneurs. Women founders are twice as likely to establish companies focused on sustainability and social impact. Rural startups are pioneering solutions in agriculture technology, renewable energy, and digital health—the core industries of tomorrow's regenerative economy. COMMUNITY CAPITAL EMERGES AS THE NEW COMPETITIVE ADVANTAGE Historical economic development models relied on chasing the next big corporation or tech unicorn. The emerging model recognizes that sustainable economic growth comes from nurturing indigenous entrepreneurial ecosystems and mobilizing community capital—the underutilized assets, networks, and knowledge already present in every community. Community capital manifests in multiple forms: the retired software engineer who becomes a mentor to local startups, or the community bank or investment group that develops new lending products for underserved entrepreneurs. When we activate these assets systematically, we create economic multiplier effects that far exceed traditional attraction strategies. Consider Iowa State University's AI Institute for Resilient Agriculture, which received $20 million in federal funding to develop digital twins of crop plants and farm fields using high-powered computers, robots, and drones. Combined with Iowa's established AgTech Accelerator ecosystem—which connects startups with industry leaders like John Deere, Corteva Agriscience, and regional agricultural cooperatives, the state has created a model for how community assets can be leveraged to drive AI entrepreneurship in agriculture. Companies like Rantizo, which developed drone technology for targeted agricultural spraying, have emerged from these programs to become the first legally authorized drone spraying company in Iowa and are now licensed across 14 states. The secret wasn't importing expertise—it was recognizing and amplifying the innovation capacity that already existed. AI AS THE GREAT EQUALIZER Artificial intelligence (AI) represents perhaps the greatest democratization of entrepreneurial capability in modern history. For the first time, a single founder with a laptop can access computational power that was once the exclusive domain of Fortune 500 companies. This levels the playing field in unprecedented ways. The key insight for leaders is that AI entrepreneurship doesn't require massive infrastructure investments or decades of ecosystem building. It does require strategic support for the development of skills and market access that enable founders to leverage it effectively. For example, the exploration of AI integration into urban farming offers leverageable innovative practices that enhance food security in Black communities. AI introduces new dimensions to small farms and urban agriculture through advances in crop monitoring and resource allocation. Indoor vertical farming uses AI algorithms to analyze light, temperature, nutrient levels, and humidity data. These insights optimize lighting and climate control systems to ensure optimal plant growth in confined spaces, where urban and community farming exist. THE REGENERATIVE ECONOMY IMPERATIVE The regenerative economy actively restores and revitalizes systems beyond sustainability. For economic development leaders, success is measured by ecosystem health, community resilience, and inclusive wealth building, not just job creation and tax revenue. This approach particularly benefits entrepreneurs of necessity, who often start businesses to solve problems in their own communities rather than chase venture capital valuations. When we align economic development incentives with regenerative principles, we unlock innovation that creates both economic returns and social impact. The regenerative economy also recognizes that true economic resilience comes from diversity—diversity of industries, ownership structures, and leadership perspectives. Monocultures are vulnerable, whether in agriculture or economic development. The communities that will thrive in the next economy are those that cultivate entrepreneurial ecosystems as diverse and resilient as natural ecosystems. For those ready to embrace this transformation, five strategic priorities should guide your efforts: Audit your community's assets, including physical infrastructure, financial resources, local talent, and expertise. The regenerative economy relies on community capital, and most communities have more than they think. Develop AI entrepreneurship programming for underrepresented founders. Partner with community organizations to provide technical training, business development support, and market access programs at existing gathering places. Tax increment financing, workforce development funds, and business attraction incentives should prioritize companies that create good jobs, serve community needs, and contribute to long-term ecosystem health. Build bridges between industries and emerging entrepreneurs. Successful initiatives connect established businesses with innovative startups by offering mentorship, pilot programs, and mutually beneficial supply chain relationships. Measure what matters. Track local ownership percentages, supply chain localization, environmental impact, and community wealth building alongside traditional economic indicators. THE MOMENT OF TRUTH The communities that will thrive in the regenerative economy recognize the untapped potential in their own backyards, see diversity as a strength rather than a challenge, and understand that true economic development means building systems that work for everyone. The tools are available. The need is urgent. The opportunity is unprecedented. What we need now is the leadership to make it happen. The super-early-rate deadline for Fast Company's Most Innovative Companies Awards is tonight, July 25, at 11:59 p.m. PT. Apply today.

Hercules Capital's Wholly-Owned Investment Adviser Launches Fourth Institutional Private Credit Fund
Hercules Capital's Wholly-Owned Investment Adviser Launches Fourth Institutional Private Credit Fund

Yahoo

time2 days ago

  • Business
  • Yahoo

Hercules Capital's Wholly-Owned Investment Adviser Launches Fourth Institutional Private Credit Fund

Hercules Adviser completes first close of Hercules Growth Lending Fund IV, a venture and growth stage credit fund, with leading institutional investors Fund IV is the fourth institutional private credit fund launched by Hercules Capital's wholly-owned investment adviser in five years Hercules Adviser now manages four funds with approximately $1.6 billion in committed debt and equity capital SAN MATEO, Calif., July 28, 2025--(BUSINESS WIRE)--Hercules Capital, Inc. (NYSE: HTGC) ("Hercules," "Hercules Capital" or the "Company"), the largest and leading specialty finance provider to innovative venture, growth and established stage companies backed by some of the leading and top-tier venture capital and select private equity firms, today announced that Hercules Adviser LLC ("Hercules Adviser"), its wholly-owned registered investment adviser, completed its first close of a fourth institutional private credit fund, Hercules Growth Lending Fund IV LP (the "Fund" or "Fund IV"). "This first close reflects the strength of our differentiated investment platform and the confidence our partners have in our disciplined approach to venture and growth stage lending," said Scott Bluestein, chief executive officer and chief investment officer of Hercules. "We see enormous opportunity to continue to back venture and growth stage technology and life sciences companies, and are grateful for the long-term support of our investors across the Hercules platform. Fund IV will allow us to further scale the platform and continue to finance some of the leading institutionally-backed growth stage companies in the ecosystem." The Fund will leverage Hercules Capital's scale, deep industry relationships, rigorous underwriting framework to identify and support companies at inflection points in their growth trajectory. Since inception, Hercules Capital, directly and through investment funds managed by Hercules Adviser LLC, as of March 31, 2025, has committed over $22.0 billion to more than 680 portfolio companies, with a focus on first-lien structures and downside protection. Hercules Capital and Hercules Adviser together have over $5.0 billion of assets under management as of March 31, 2025. With the launch of Fund IV, Hercules Adviser now manages four private credit funds with approximately $1.6 billion in committed debt and equity capital. About Hercules Capital, Inc. Hercules Capital, Inc. (NYSE: HTGC) is the leading and largest specialty finance company focused on providing senior secured venture growth loans to high-growth, innovative venture capital-backed companies in a broad variety of technology and life sciences industries. Since inception (December 2003), Hercules has committed more than $22 billion to over 680 companies and is the lender of choice for entrepreneurs and venture capital firms seeking growth capital financing. Companies interested in learning more about financing opportunities should contact info@ or call (650) 289-3060. Hercules, through its wholly owned subsidiary business, Hercules Adviser LLC (the "Adviser Subsidiary"), also maintains an asset management business through which it manages investments for external parties ("Adviser Funds"). The Adviser Subsidiary is registered as an investment adviser under the Investment Advisers Act of 1940. Hercules' common stock trades on the New York Stock Exchange (NYSE) under the ticker symbol "HTGC." In addition, Hercules has one retail bond issuance of 6.25% Notes due 2033 (NYSE: HCXY). Forward-Looking Statements This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We may use words such as "anticipates," "believes," "expects," "intends," "will," "should," "may" and similar expressions to identify forward-looking statements. Forward-looking statements are not guarantees of future performance and should not be relied upon in making any investment decision. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations. While we cannot identify all such risks and uncertainties, we urge you to read the risks discussed in our Annual Report on Form 10-K and other materials that we publicly file with the Securities and Exchange Commission. Any forward-looking statements made in this press release are made only as of the date hereof. Hercules assumes no obligation to update any such statements in the future. View source version on Contacts Michael HaraInvestor Relations and Corporate CommunicationsHercules Capital, Inc.(650) 433-5578mhara@

20 Strategies To Secure Venture Capital Backing
20 Strategies To Secure Venture Capital Backing

Forbes

time4 days ago

  • Business
  • Forbes

20 Strategies To Secure Venture Capital Backing

Securing venture capital can help a growing business fully realize its potential, but standing out to investors requires more than just a good idea. From building long-term relationships to showcasing real traction, founders must take intentional steps to align with what venture capitalists are truly looking for. Whether you're just beginning to raise funds or refining your next pitch, understanding the mindset and priorities of VCs can make all the difference. To help, 20 members of Forbes Finance Council share proven strategies that can increase your chances of landing that coveted venture capital investment. 1. Movement-Based Business Framing I've found that the most effective way to attract venture capital is to frame your company as a movement, not just a business—when investors see you're reshaping an entire industry with AI-driven insights, they're willing to double down before the first sale is even made. - Robert Mallernee, Eton Solutions 2. Clear Market Sizing And Trend Alignment You should present clear market sizing (TAM, SAM, SOM) with solid driver tree view and validated numbers, then align your next five or 10 years of business strategy with positive (versus negative) industry megatrends (like AI) and ensure your financials and cap table are clean and free of issues. You don't want any surprises for investors. Lastly, always prepare answers and rationale about any performance deltas against industry peers. - Lechi (Richard) Zhang, Stone Lake Capital 3. An Exit-Oriented Operational Strategy One way is to treat every stage of growth like it's on a path to exit. This mindset sharpens execution, clarifies your narrative and aligns your team around value creation. VCs are drawn to founders who understand the exit landscape, structure accordingly, maintain systems and controls and align everyone toward long-term value. You must be prepared long before the ask to showcase the organizational discipline. - Peter Goldstein, Exchange Listing LLC 4. Long-Term Trend And Growth Positioning The first key point to grasp is that the venture capital (VC) model is designed for disruptive companies capable of rapid growth and delivering returns of 10x or more for the fund. As such, it's important to frame your company's narrative around how a long-term market trend, combined with a differentiated product, will drive accelerated growth and enable efficient customer acquisition. - Abhishek Nanda, Revalize 5. Leadership Strength And Market Understanding You must be clear about the problem you're solving and the total addressable market for your solution. Then, you can demonstrate leadership to see your strategy through with adaptability to be coachable and nimble as you face inevitable hurdles. Venture capital investors want to partner with owners who understand their customers' demands, market opportunities and the need to balance focus and flexibility. - Thierry Brunel, Matter Family Office Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? 6. Early Due Diligence Preparation You should make your business "due diligence ready" long before you raise. VCs move faster and with more conviction when founders present clean financials, clear KPIs and a compelling growth narrative tied to real data. You shouldn't just pitch the vision—prove you can operationalize it. Investing early in financial infrastructure and scenario planning shows you're not only ambitious but also execution-ready. - Alexander Ronzino, Rework Capital LLC 7. Product-Market Fit And Traction Metrics Businesses should demonstrate strong product-market fit with clear traction metrics such as revenue growth, user engagement or customer retention. Investors are more likely to fund startups that can prove demand and scalability. Showcasing a credible, experienced team and a compelling vision for market disruption also builds confidence. - Anatoly Iofe, IceBridge Financial Group, LLC 8. A Data-Backed Investment Narrative It's important to focus on building a compelling, data-backed narrative that highlights traction, market scalability and clear exit potential. Demonstrating disciplined financial management and a strong founding team can significantly increase investor confidence and attract capital. - Alfonso Cahero, Cahero Family Office 9. Early Venture Capital Relationship Building You can start building VC relationships early, even before you are ready to raise. Consistent, thoughtful updates on your traction and milestones keep you on their radar. Over time, this positions you as a founder to watch. In that case, when you are ready, they are already interested. It's about attracting capital, not chasing it. - Nike Ajao, OneBarrow Corporation 10. Product Validation Through Customer Engagement One way is to keep things digestible and demonstrate product-market fit. Attracting early customers and demonstrating strong engagement or revenue helps to get the attention of VCs. Proving your business model's potential and validating it makes it more attractive to investors. - Jake Claver, Digital Ascension Group 11. Vision Alignment With Market Trends One powerful strategy is to align your business narrative with future market shifts, clearly articulating how your company is positioned to lead in emerging trends. You can back this with strong unit economics, a scalable model and a compelling vision. VCs invest in potential, but they commit to clarity, conviction and a roadmap that signals outsized returns. - Swati Deepak Kumar (Nema), Citigroup 12. Smart Cash Management Businesses can showcase a smart cash burn strategy that fuels sustainable growth. They must clearly communicate how targeted investments drive ARR, customer retention and innovation and back it with metrics and transparency to prove the long-term value, not just spending capital. Investors fund confidence and clarity, and providing a clear runway for their financing underscores your commitment to them. - Mike Whitmire, FloQast 13. Scalable Growth And Competitive Differentiation One effective strategy to increase venture capital investment in your business is to demonstrate a clear path to scalable growth with defensible market differentiation. Investors look for startups that can also sustain competitive advantage through unique IP, network effects or deep industry insight. You can pair this with strong traction metrics and a credible founding team to build investor confidence. - Crystal Gilmore, The Spearhead Group Inc 14. Real-Time Operational Proof One tip is to turn your operations into a live case study for VCs. You shouldn't just say your business works. You need to show it works in real time by using dashboards, behind-the-scenes video updates and even customer wins as proof points investors can watch unfold. Most founders pitch promises. You want to pitch momentum. In layman's terms: Make your business too real to ignore. - Karla Dennis, KDA Inc. 15. Strategic Alignment With Niche Funds To attract venture capital, you should consider partnering with a sector-specific microfund or founder-led fund that aligns with your niche. These focused investors bring not just capital, but also deep industry insight, strategic networks and hands-on support. This positions your business for stronger growth and future backing from larger venture capital firms. - Elie Nour, NOUR PRIVATE WEALTH 16. Customer Traction As Market Validation You can turn your customer traction into proof of inevitability, as well as show that your product isn't just being used—it's becoming essential. It's best to use metrics, testimonials and retention data to demonstrate growing demand, then frame that momentum within a scalable model and clear go-to-market plan. VCs don't just want growth—they want evidence you've already built the machine that will deliver it. - Michael Foguth, Foguth Financial Group 17. Tangible Results And Scalable Potential One smart strategy is to show traction, not just vision. Investors want to see proof that your business works in reality. That means strong early adoption, clear revenue potential and a solid understanding of your unit economics. When you can connect your story to real results and show you can scale it, VCs pay attention to it. - Nick Chandi, Forwardly 18. Authentic Founder Branding To boost venture capital investments, I focus on personal branding—sharing my journey, insights and vision as a founder. This builds trust and credibility, making our equity management platform stand out. Investors back people, not just products, so authentic storytelling is my edge. - Tomas Milar, Eqvista Inc. 19. Strategic Tax And Asset Structuring You can showcase a clear path to scalable revenue with a strong tax strategy and asset protection, like using a 453 Deferred Sales Trust or IP-holding LLC. These structures increase investor confidence by reducing risk and enhancing post-exit value. - Andre Pennington, Pennington Law 20. Crowdfunding You may want to consider crowdfunding, especially in a B2C segment. Those angel investors will also become your users and promoters. If executed right, VC funds will follow as well. - Andrew Izyumov, 8FIGURES The information provided here is not investment, tax, or financial advice. You should consult with a licensed professional for advice concerning your specific situation.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store