Solution for Jobs: Spur start ups with $50,000 micro-seed investments.Submitted by kallos on Sun, 02/05/2012 - 12:01pm
Seed money to build a start-up business usually involves an investment of a quarter million dollars or more. But NYC Seed was recently appropriated only $2 million, which led it to announce that their smallest investment would be $200,000 or more, meaning that only 10 companies or fewer would benefit. In this economic crisis, we should offer micro-seeds of $50,000 or less to as many creative entrepreneurs as possible. Instead of seeding 10 companies, that $2 million would seed 40 companies or more. While $50,000 may not be much for most small businesses, it is just enough for the ICE sector where someone already has a career but might need additional capital to turn their art or website into a full time job and the next big thing. Additionally, micro-seeds would gain access to shared conference rooms and presentation spaces along with technical services for business plans, formation and first round investors. By lowering our initial investment, increasing their number and providing support, New York City is likely to generate many more jobs.