The Capital Marketplace Offers New Way To Connect Local Small Technology Firms Who Need Capital To Global Sources Of Capital
The new networking platform is called the Capital Marketplace, and in each city, it is comprised of all the professional service and financial support firms who have an interest in capital market transactions, involving both operational firms and entrepreneurial firms.
- (1888PressRelease) November 05, 2010 - Raleigh, N. C. A new business social networking initiative in 15 Southern U. S. metro regions is aimed at increasing the rate of capital investment in small technology firms in those regional economies.
The new networking platform is called the Capital Marketplace, and in each city, it is comprised of all the professional service and financial support firms who have an interest in capital market transactions, involving both operational firms and entrepreneurial firms.
Unlike some of the existing venture capital or entrepreneurial networking groups that have an exclusive focus on startups, and the exit path for private equity investors, the new networking groups have a focus on funding the growth of existing small technology manufacturing and IT firms.
In addition to including the local angel partnerships and venture capital firms, membership in the new networking groups include all forms of capital firms, including commercial finance, debt investors, asset based lenders and SBA lenders.
"The tremendous gap in the capital markets is for funding 5 year old companies, or older companies, that have a new product innovation and need capital to get the new product into the market," said Thomas Vass, the capital market professional from Raleigh, N. C., who is organizing the 15 new networks.
"These type of small companies do not fit the traditional venture or angel capital business model because most of them are family-owned and will never have a clear exit path for equity investors, and also because the amount of capital that they need is so small that it does not interest most equity investors," said Vass.
"To create jobs in each city, the emphasis must be on increasing the rate of capital investments in existing technology manufacturing and IT firms," he added, "and that means creating a new financial market that can deliver the form and quantity of capital small firms need to grow."
The Capital Marketplace is a new type of social networking website that functions like a professional business membership organization with two main goals:
1. Conducting monthly networking events where 3 companies from the business community describe their plans and strategies for growth.
2. A collaborative platform that allows local firms to work towards the creation and operation of a fully functional regional capital market that continuously directs capital investments and commercial funding into the small firms in the nine most important technology clusters in the regional economy.
Part of the creation of a capital market in each city will involve using the social networking platform for the creation and combination of three capital market components that do not currently exist, Vass explained. "The networking event itself is how new technological knowledge about potential investment opportunities are diffused in the regional economy," said Vass. "But, that new knowledge must be harnessed to commercial ventures that are able to obtain adequate funding," he explained.
The regional websites facilitate cooperation and collaboration on the technology commercialization of small firms that need capital to grow.
"In addition to networking collaboration, the small business economic strategy in each city will require a new type of econometric model that can help target investments to the most promising technology clusters," Vass explained.
He added that capital targeting will also require a new type of regional closed end mutual fund in each city that acts as the lead investor in making very small capital investments.
The social networking software on the Capital Marketplace website allows local firms to easily participate in monthly presentation events and funding activities. The cost to make a company presentation at a monthly event is $750, and includes professional help in preparing a company power point presentation and extensive media and public relations about the presenting companies.
"When a new member firm joins their local Capital Marketplace," said Vass, "they become a catalyst for small business growth and job creation. They help create the new local business infrastructure that promotes local investments in local firms, especially in the most important job creation firms in the nine high technology industrial clusters in the regional economy.
About the Capital Marketplace:
The marketplace is an online event management and networking website that promotes increased capital investments in small technology firms in. http://bit.ly/dtIy6I
Membership in the marketplace allows members to easily communicate and network about potential investment opportunities in the regional economy. The Capital Marketplace is related to a second online networking tool called The Private Capital Market, which functions as a global due diligence platform. For more information, contact Thomas E. Vass at 919 975 4856
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