Good ideas attract money
August 25th, 2006 by 
Chris Harris
Entrepreneurs are always looking for money. It seems that they’re just on the brink of a fantastic idea - if only they had just a little more to fund it with. Similarly, VCs, angel investors, and the rest are constantly complaining at how money is ubiquitous and how few good ideas are out there. Who’s right? Well, it seems that Steven Kreft and Russell Sobel at West Virginia University have determined that, “… it is the presence of entrepreneurial activity that draws venture funding to an area and not vice versa.”
In their paper, Public Policy, Entrepreneurship, and Economic Growth the two find that:
- The amount of sole proprietorships attract venture capital
- Increased patent activity draws more venture capital
- Sole proprietorships and patent activity tended to reinforce each other
- That various state and local laws could increase entrepreneurial activity (patents and sole proprietorships
This has significant impacts for entrepreneurs - if your idea is good and requires more money - don’t be deterred. The money will come looking for you soon enough!
Posted in Entrepreneurial, Start-up, Venture Capital | 