Facebook’s falling stock price after its highly anticipated IPO may have disappointed some investors, but that doesn’t overshadow this important point – entrepreneurs took a great idea and turned it into a multi-billion dollar business that created thousands of jobs.
Venture capital firms invested in Facebook early on. Andreessen Horowitz, Accel Partners and Elevation Partners reaped the benefits of its stake in Facebook from the May 18th IPO.Â As the fallout continues over the Facebook IPO and the resulting share price slump, what are venture capital funds doing to discover the next Facebook or transformational product or service? Will the next disruptive technology come from a person of color or a woman?
Access to capital is one of the biggest barriers facing startups. This is where the Venture Capital Access Program or VCAPÂ© comes in. VCAPÂ© is a partnership between the Harvard Business School Alumni Angels of Greater New York (HBSAANY) and The National Association of Investment Companies (NAIC).Â The HBSAANY invests nearly $2 million dollars into 7 to 10 companies annually.
“We’re representing a diverse group of entrepreneurs with the potential to develop something equally transformative over time if given the resources,â€ says Ed Dandridge, President and CEO of The NAIC.
VCAPÂ© seeks entrepreneurs across the traditional and digital business spectrum. Dandridge says companies in high growth businesses such as technology, life sciences, and consumer packaged goods are ideal candidates.