White House Announces $2 Billion in Capital and Resources for Startups

The White House announced two initiatives intended to help entrepreneurs grow their businesses and create jobs by increasing their access to capital and resources. The first initiative focuses on providing up to $1 billion in new capital to help early-stage small businesses. The other will attempt to provide entrepreneurs with free resources and services needed to help startups grow their businesses and create jobs. Read the press release...

The Small Business Administration (SBA) announced that it is moving forward with the launch of a $1 billion "Early Stage Innovation Fund." Originally announced as part of Startup America, the fund will provide matching awards to Small Business Investment Companies (SBICs). SBA hopes the new funding will allow high-growth companies to bridge the "Valley of Death" funding gap that has killed many promising startups. The Early Stage SBIC Initiative will target this gap, by licensing and guaranteeing leverage to funds focused on early/seed stage investments. Starting in spring of 2012, SBA will commit up to $1 billion over the next five years. 

The Startup America Partnership also announced a commitment from more than 50 private-sector partners to deliver services valued at over $1 billion (e.g., software, consulting and legal services). The partner commitments are a direct response to specific requests made by the nearly 2000 Firms that have already registered with Startup America since September. Read the press release...

Startup America also announced the Startup America Policy Challenge. Utilizing challenges.gov's online platform, the White House will ask entrepreneurs and the public to provide solutions to accelerating entrepreneurial innovation in three priority areas: healthcare, clean energy and education. College students and others will then compete to translate the best ideas into "Policy Business Plans" that will be shared with relevant cabinet secretaries from the Department of Health and Human Services, the Department of Energy and Education. Visit the challenge's website...