This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Old Investors, Young Entrepreneurs

"Certainly young people have more opportunity to start important businesses than they did before, and actually I think that when you're in college it's a great time to start a business -- it turns out that people in college have meal plans and places to sleep. If those are given, you can throw yourself into the business," says Nick Seguin, manager of entrepreneurship at the Ewing Marion Kauffman Foundation, the largest organization in the world dedicated to fostering entrepreneurship. Seguin started a digital consulting firm when he was 19.

Yet to impress investors, Seguin says it's important that the young entrepreneur is familiar enough with the mechanics of their business, is able to talk proficiently about the industry they serve as well as what they have done in the past six months to accomplish their goals.

"If a young woman is building a global telecom company at 28, what makes them the domain expert here? It's a huge market opportunity, that's great, but what makes you the one that I should place a bet on?" Seguin says. "The real question is 'Have you validated your business with customers?' What does your cash flow look like? The next iPhone app would be really big, but I'd rather somebody talk about solving a problem."

Investors are not only looking for traction but social validation. "A lot of investors will meet [young entrepreneurs] and ask, 'Who else have you talked to? Who else in my network can say you are who you are?'" Seguin adds.

Gerber, of the Young Entrepreneur Council, is an entrepreneur himself. Most recently he started Gen Y Capital Partners, an early stage venture accelerator for Generation Y entrepreneurs. The new venture began taking applications Nov. 1.

"It's important for our company and other companies to look at the bigger problems of why young entrepreneurs don't become entrepreneurs -- there are too many barriers" such as access to capital, Gerber says. "Not to say that banks are lending to anybody, but older generations have collateral and credit history."

The venture company plans to invest on average $15,000 to $50,000 (in some cases as much as $250,000) into early stage ventures by young people across multiple industries.
3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $110.76 0.34%
FB $93.98 2.10%
GOOG $641.28 2.30%
TSLA $246.00 -0.63%
YHOO $30.84 0.42%


Chart of I:DJI
DOW 16,776.43 +304.06 1.85%
S&P 500 1,987.05 +35.69 1.83%
NASDAQ 4,781.2640 +73.4890 1.56%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs