In this Tech Republic article, Brett discusses how raising capital is different for nonprofit and for-profit startups.
(July 13, 2015) A huge aspect of building a startup is raising money, but access to this capital is different for for-profit and nonprofit ventures.
Brett Cenkus built six for-profit startups and is now working on a nonprofit. From his experience, there is more capital available to for-profit startups from a wider variety of investors. Friends and family are often excited by the idea of striking rich, and the venture capital industry is continuing to see strong investments.
“For non-profit ventures, options are far more limited,” Cenkus said. “There is a little grant money available, but beyond that you’re left to pitching wealthy individuals who have to believe strongly in your cause. This is somewhat odd since charitable giving dwarfs the size of the US venture capital market.”
Read the entire article at TechRepublic.com