Angel Funding

The evaporation of capital for small, private companies presents acute danger for entrepreneurs requiring cash to fund their businesses. As a direct investor in several such companies, I have seen bank loans, AR lines, and letters of credit reduced, restricted or yanked by banks, even when the borrowers are current. And I have seen valuations drop by more than 90% on subsequent equity raises for companies needing cash which have not yet attained cash flow breakeven. For those just starting to seek funding, the fear within the angel community presents an equally chilling picture.  

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