Federal Fund Proposal Targets Valley Of Death

Two not-for-profit groups are spearheading an ambitious effort to launch a $2 billion government investment fund designed to help plug gaps in state- and regional-sponsored venture investments nationwide.

Richard Bendis, president and founder of public/private partnership Innovation America http://www.innovationamerica.us/ , which is heading this lobbying effort along with The National Association of Seed and Ventures Funds http://www.nasvf.org , said the money would be used to help young start-up companies fund development after they’ve received initial angel rounds but before receiving their Series A financing, a period called by some the “valley of death.” The proposed fund-of-funds would make allocations to certain regional-development groups, which would then make the final investments in start-ups.

By Jonathan Matsey

Full Story: http://blogs.wsj.com/venturecapital/2009/04/13/federal-fund-proposal-targets-valley-of-death/?mod=rss_WSJBlog