The financial crisis that started in late 2007 started the fall of many economies across the world. Positions were liquidated, mortgages were left unpaid, and jobs were lost. Not only has the downturn affected individuals, it has hurt new, developing companies from receiving financing.
Wade Larson, Co-Founder and Executive Vice-President of UrtheCast came into our lecture to talk about the company’s revolutionary imaging system connection images from space to information on the internet. Wade outlined the UrtheCast’s difficulties of trying to put together a final round of financing. To me it seemed difficult to understand how a company, with innovative imaging technology and access to real estate on the space station, is struggling to fulfill capital requirements.
In a Bloomberg Businessweek article, angel investors reported a 54% decline in investments during this period, stating economic conditions, taxes and regulations that created unfavorable environments for investors. During the US election, the role small businesses play in the economy was continuously focused, on however, the investors themselves are saying there is no incentive to help these companies! Canada and the U.S.A. will need to quickly change regulations and realize the small businesses are the key to increasing private sectors jobs, and eventually reviving the economy.