Magazine article Black Enterprise

Kid Venture Capital: Here's How Young People Can Look for Cash

Magazine article Black Enterprise

Kid Venture Capital: Here's How Young People Can Look for Cash

Article excerpt

Your child runs home excited one day. She's decided that her talents for crocheting can be used to start a business making clothes for dolls and stuffed animals. Now where can you get the money to finance her idea? Do you get on your knees and pray for a windfall? Or do you go to a commercial bank? Trina Taylor posed that very question to her parents, who ended up giving the 12th-grader a small loan.

Asking Mom and Pop for a loan is usually the first route kids take in securing capital. Going to family members for loans to get your business off the ground is not a bad path to follow. Say you were to ask 10 people for $20 each. That's $200 to get started probably enough to buy supplies.

But what if your family is strapped for cash and you require DAN $1,000 to get up and running? Now what? Off to see the wizard? Yes, the wonderful "financial wizards" who sit on venture capital boards. Venture capital boards exist at most youth entrepreneurial organizations. Usually made up of an executive committee and the divisional director of the program, their primary function is to review business plans and decide whether or not the plan warrants funding. If your child attends a business program, completes the required hours for entrepreneurial course instruction, and is prepared to logically and clearly state how the grant or loan will be distributed, up to $5,000 may be available to him or her.

Shannan Robinson, 17, plans to go to a venture board for capital to finance Sapphire, a clerical business she founded that produces resumes, cover letters, business cards and brochures. …

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