Last week in the Vancouver Courier, Janaya Fuller-Eva wrote about how innovation flourishes during difficult financial times pointing to the Great Depression inventions of the copy machine, car radio and electric razor.
In the article she quotes two members of the New Ventures BC community – Ron Klopfer and Mike Volker.
Business savvy is essential when creating a new product but people with good ideas shouldn’t let the recession keep them from looking for financing, technology entrepreneur Ron Klopfer said. “If it is a quality idea with a sound business model, there’s no reason to be put off by the recession,” Klopfer said. “There’s still money to be found.”
Klopfer argued money is available, particularly in the later stages of bringing a product to market, when private investor “angels” and venture capitalists get involved in a project.
Mike Volker runs VANTEC, the Vancouver Angel Network for Technology Companies. The network helps startup tech companies connect with investors and mentors.
Volker is an angel investor with two funds of his own. He agreed that companies with good ideas are finding investors despite the economic climate, but the payouts are lower. “Instead of four or five investors writing cheques for a half million dollars, you have two or three investors putting in $400,000 to $500,000,” Volker said.
He said that while it isn’t necessary for new entrepreneurs to have a lot of money themselves, they should invest in their company. “Investors like to see them commit financially as well,” Volker said.