Small business owners in search of funding for start-up and/or expansion have in recent months been out-of-luck due to the recent banking crisis and the resulting economic challenges. While it’s never been easy for a small business to gain access to bank loans, in recent months it has become virtually impossible. This situation has forced small businesses to seek out alternative means of financing – one of those often sought out is venture capital.
However, even the venture capitalists are being forced to adapt to this new economy and small business environment. A recent story in the Wall Street Journal details a new business model being employed by a venture capital firm that was an early backer of Facebook, Napster, Plaxo, and Causes. This new business model includes the participation of a group of Silicon Valley heavyweights such as former Yahoo chief executive Terry Semel, LinkedIn co-founder Reid Hoffman, Facebook Chief Executive Mark Zuckerberg, and Michael Arrington, founder of industry Web site TechCrunch.
Read the whole story HERE.