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Published on: 5/1/2009
Last Visited: 5/10/2009
Innovation Works, which previously invested $200,000 in Metis, is certainly fielding more requests, said Chief Investment Officer Matt Harbaugh.
"The funding landscape is challenging for companies," he said.
"Generally, the companies we're funding are too early and too risky for traditional bank loans.
Their main option is angel funding and venture capital, and over the past year, they've really had a double whammy."
Early stage venture capital investors have become more risk averse and are reinvesting in their portfolio companies, Harbaugh said.
...
"We're encouraging our companies to look at every option," Harbaugh said.
"Entrepreneurs are created by nature, I think, and the benefit of having a very small company is you can change quickly and adapt to the market."
Harbaugh said 2008 was the strongest year ever for Innovation Works portfolio companies but expects 2009 to be more challenging.