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Lack of seed money hinders new businesses in Montana

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August 3, 2017View for printing

We moved here three years ago out of California to semi-retire and then, out of the love of our jobs, we started a small business. The one thing keeping us from making a bigger profit so we can grow and add some employees is what most would call "startup" or "seed" money.

So far, none of the countless county, state and federal agencies designed to help "small businesses" get started and create jobs have been able to help us. YMO Media & Marketing ... 1925500922/


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Reader Comments:

I'm afraid Mr. Lovato is misinformed in his view that there is no seed capital in Montana for startups with great models that solve big problems.

His comment is TRUE for small services businesses who have no differentiation or unique IP. But suggesting that there is a lack of seed capital in MT in general isn?t even remotely true, and tends to psychologically drive entrepreneurs of all stripes to seek investment outside the state when there are terrific options right here.

Frontier Angels alone will invest $10M or so over the next 3 years, and that's probably only 25% of the total seed capital available.

Homestake is also a great option for coompanies like this. We need to start telling the positive side of the investment capital availability story whenever someone wants to complain that they couldn?t get their business funded.

There is capital available but the idea needs to be able to compete on the global stage and become a world leading company. Any company is competing for the same money as tomorrow's Google and Apple. It has to be a big idea with a world class management team and either a significant interest from a number of potential clients or actual sales. A dollar can be invested anywhere so entrepreneurs in Montana are not competing for money that's solely destined for Montana.

Montana's entrepreneurs need to step up and show that they can compete on the world stage and understand how they can earn a significant amount of money from a global customer base. If they do, the seed money as well as multiple stages are there.

Completely agree Russ. He's confusing seed capital with revenue and ignoring the fact that they both require an ability to create a compelling value proposition!
--Paul Gladen

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