Copyright © 2013 Albuquerque Journal
When it comes to scarcity of venture capital in New Mexico, it’s the little guys who suffer the most.
Those are the startups that have potentially great ideas for new products or services, but who lack access to “early-stage” capital from venture investors. They need that funding to get their companies up and going, and to continue developing their technologies enough to attract the larger, later-stage investments they’ll eventually require to get to market.
That “seed” and “early-stage” capital, which ranges from tens of thousands of dollars to about $2 million, has slowed virtually to a trickle in New Mexico in recent years, according to quarterly surveys of local investment activity by the New Mexico Venture Capital Association.
“There just aren’t as many active sources of early-stage financing doing deals today in New Mexico,” said Tom Stephenson, managing partner of the Verge Fund and chairman of the association’s quarterly survey.