One of the unintended consequences of income inequality is an excessive amount of startup capital chasing too few real opportunities.
In the past, we’ve called this “hot money” because it tends to burn anyone who uses it.
Recently, the Financial Times published an article that talks about the current state of startup investment. This article whines about the potential that some slacker founder could waste the seed money on an extravagant lifestyle then walk away from the nascent venture when the money’s gone.
A better option for all involved would be makerspace development. The sophisticated investors would be free to enter the financing process much later. Talent could be drawn from the local community while local and regional ties would be strengthened with homegrown businesses.