Government Funding for Startups Really Does Exist, Uncle Sam Ponies Up $2.5B in Q3
Amid the spam, books, and late night TV infomercials promising inside information about little
known government programs and free money, there actually is cash out there for your business. In fact, in Q3 2009, ChubbyBrain, which tracks venture capital, angel investment and several other types of investment in private companies, tracked $2.3B going to 65 young companies from various governmental or government-affiliated entities. These programs and government sponsored public-private partnerships offer funding via loans, grants and equity investments to promising young companies and technologies.
The average deal was $36.2M, but this aggregate number is misleading; several large fundings by the Department of Energy distort it. The more interesting highlight for early stage entrepreneurs is seen in the chart below. The great majority of investments are under $5 million, with the median across the 65 deals standing at $1.1 million. Read full story:
