Securing financing, even in a robust market, can be a daunting and challenging under-taking. Up until recently, bank lending had frozen, while investors limited their exposure to new opportunities for only highly risk-averse opportunities. As the markets have stabilized, capital is becoming slightly more available, albeit very slowly. Whoever is leading a company’s financing process, most likely the founder or CEO, must explore all potential avenues for investment—whether it’s for equity or debt. For smaller companies (under $1million in sales), it is advisable that the entrepreneur go the “friends and family” route while simultaneously pursuing opportunities with the many different angel networks that exist. Within most metropolitan areas, there is at least one, if not several, angel networks where a company can present to either a generalist/regional angel network or one with a focus, such as women CEOs or mission-driven companies. Although the venture capital community has shrunk quite considerably, angel investors (individuals) and corresponding angel networks have remained consistent in membership, thus taking up some of the slack left behind by a dearth in venture financing. At Nutrition Capital Network (NCN) events, companies with a few years of solid sales growth coupled with a strong brand and management team have had the most success attracting investors.

Mike Dovbish
Executive Director
Nutrition Capital Network









Nutrition Business Journal will publish an issue devoted to finance and investment within the nutrition industry in August 2010. More information about Nutrition Capital Network can be found via the NCN Website.