Kick Starting Rural Early Stage Investments

North Dakota, like most U.S. rural areas, lacks capital for startup and growing companies. Entrepreneurs have difficulty finding patient, long-term capital to sustain company growth and rarely find seed stage equity investments to fuel new company growth. In rural areas investment capital is the #1 missing ingredient that inhibits innovation, short circuits leveraged investment from outside the region, and inhibits creation of growth companies.

To the lack of capital there is often added a risk-averse culture and inadequate support for entrepreneurial ventures, particularly non-agriculture ventures. An ethanol plant might raise millions while a small technology company with an exciting idea and high potential goes lacking and oftentimes packing.

Active angel investors are only a small resource for rural areas. Most would-be angel investors lack experience and low confidence about pricing and structuring investments, so it’s only the occasional deal made by individual investors. Capital markets in rural areas remain unorganized and are non-existent in many communities, reducing their ability to compete and thrive in the today’s economy.

But some rural communities have shown the capacity and willingness to provide equity capital resources to local entrepreneurs. They are winning both the sprint and marathon race to create jobs, economic growth and prosperity by kick starting their local early-stage investment market. Here’s what they are doing to create success in rural areas:

Delore Zimmerman
President
CEO Praxis, Inc.
Grand Forks, ND

Full Story and great advice for any rural state: http://www.cfi-institute.org/VP%20-%20Kick%20Starting%20Rural%20Early%20Stage%20Investments%20-%20Zimmerman.html