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2013 State of Entrepreneurship Address: 'Financing Entrepreneurial Growth'

Ewing Marion Kauffman Foundation Research Paper

16 Pages Posted: 7 Feb 2013  

Tom Alberg

Madrona Venture Group

Andrew A. Bogan

Bogan Associates, LLC

Harold S Bradley

Private Investor

Robert D. Cooter

University of California, Berkeley - School of Law

Monika Gruter Cheney

Gruter Institute for Law and Behavioral Research

Oliver R. Goodenough

Vermont Law School

William R. Hambrecht

WR Hambrecht + Co

Frank Hatheway

National Association of Securities Dealers, Inc., NASD

Thomas F. Hellmann

University of Oxford - Said Business School; University of British Columbia (UBC) - Sauder School of Business; University of Oxford - Said Business School

Marianne Hudson

Independent

Jared Konczal

Ewing Marion Kauffman Foundation

Josh Lerner

Harvard Business School - Finance Unit; Harvard University - Entrepreneurial Management Unit; National Bureau of Economic Research (NBER)

Robert E. Litan

Council on Foreign Relations (CFR) - Council on Foreign Relations- Washington D.C.

Diane Mulcahy

Ewing Marion Kauffman Foundation

Ramana Nanda

Harvard University - Entrepreneurial Management Unit

Frank Partnoy

University of San Diego School of Law

Joe Ratterman

BATS Global Markets, Inc.

Naval Ravikant

AngelList

Jay R. Ritter

University of Florida - Department of Finance, Insurance and Real Estate

Alicia Robb

University of Colorado at Boulder; Next Wave Impact

David T. Robinson

Fuqua School of Business, Duke University; National Bureau of Economic Research (NBER); Duke Innovation & Entrepreneurship Initiative

Allison Schrager

Independent

Barry Silbert

SecondMarket

Erik R. Sirri

Babson College

Dane Stangler

Ewing Marion Kauffman Foundation

Sharon Vosmek

Astia

Date Written: February 5, 2013

Abstract

Despite recent innovations in entrepreneurial finance, particularly at the early stage of business creation, many new and young companies continue to face hurdles to acquire capital.

The Kauffman Foundation addressed current challenges and opportunities in financing entrepreneurial growth, a key driver of job creation and economic expansion, at its fourth annual State of Entrepreneurship Address on February 5, 2013. The event featured remarks from Small Business Administrator Karen Mills, U.S. Senator Jerry Moran and Kauffman President and CEO Tom McDonnell.

In his address at the National Press Club in Washington, McDonnell offered policy recommendations to increase financing of entrepreneurial ventures that are featured in a paper on the same topic. Key recommendations include: Crowdfunding: The Securities and Exchange Commission should approve rules under the JOBS Act that encourage experimentation without excessive regulation; IPOs: Greater use of auctions, such as the Dutch auction used by Google, rather than the more common practice of setting a specific price for new stock offerings; Bank Debt: Introduce more flexibility into the regulatory process – such as providing the Federal Reserve, Comptroller of the Currency and Federal Deposit Insurance Corporation the authority to make judgment calls at the local level; Regulation: Allow shareholders of companies the right to vote whether Sarbanes-Oxley accounting rules are necessary; Venture Capital: Create longer-term venture funds that include significant "skin-in-the-game" investment from General Partners, so their interests are aligned with Limited Partner investors over a reasonable time horizon.

Keywords: state of entrepreneurship, entrepreneurship, state, national, policy, job creation, regulation, barriers, growth, finance, crowdfunding, bank debt, IPO, venture capital

Suggested Citation

Alberg, Tom and Bogan, Andrew A. and Bradley, Harold S and Cooter, Robert D. and Cheney, Monika Gruter and Goodenough, Oliver R. and Hambrecht, William R. and Hatheway, Frank and Hellmann, Thomas F. and Hudson, Marianne and Konczal, Jared and Lerner, Josh and Litan, Robert E. and Mulcahy, Diane and Nanda, Ramana and Partnoy, Frank and Ratterman, Joe and Ravikant, Naval and Ritter, Jay R. and Robb, Alicia and Robinson, David T. and Schrager, Allison and Silbert, Barry and Sirri, Erik R. and Stangler, Dane and Vosmek, Sharon, 2013 State of Entrepreneurship Address: 'Financing Entrepreneurial Growth' (February 5, 2013). Ewing Marion Kauffman Foundation Research Paper. Available at SSRN: https://ssrn.com/abstract=2212743 or http://dx.doi.org/10.2139/ssrn.2212743

Tom Alberg (Contact Author)

Madrona Venture Group ( email )

999 3rd Ave
Suite 2700
Seattle, WA 98104
United States

HOME PAGE: http://www.madrona.com

Andrew A. Bogan

Bogan Associates, LLC ( email )

75 Arlington St.
5th Floor
Boston, MA 02116
United States

HOME PAGE: http://boganassociates.com

Harold S Bradley

Private Investor ( email )

No Address Available
913-219-6671 (Phone)

Robert D. Cooter

University of California, Berkeley - School of Law ( email )

Berkeley, CA 94720-7200
United States
510-642-0503 (Phone)
510-642-3767 (Fax)

Monika Gruter Cheney

Gruter Institute for Law and Behavioral Research ( email )

158 Goya Road
Portola Valley, CA 94028
United States
650-854-1191 (Phone)
650-854-1192 (Fax)

HOME PAGE: http://www.gruterinstitute.org

Oliver R. Goodenough

Vermont Law School ( email )

164 Chelsea Street
P.O. Box 96
South Royalton, VT 05068
United States
802 831 1231 (Phone)

HOME PAGE: http://www.vermontlaw.edu/Our_Faculty/Faculty_Directory/Oliver_R_Goodenough.htm

William R. Hambrecht

WR Hambrecht + Co ( email )

555 Lancaster Avenue
Suite 200
Berwyn, PA 19312
United States

HOME PAGE: http://www.wrhambrecht.com

Frank Hatheway

National Association of Securities Dealers, Inc., NASD ( email )

1801 K Street, NW
Washington, DC 20006-1500
United States
202-974-2719 (Phone)

Thomas F. Hellmann

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain
+44 (0)1865 288937 (Phone)

HOME PAGE: http://www.sbs.ox.ac.uk/community/people/thomas-hellmann

University of British Columbia (UBC) - Sauder School of Business ( email )

2053 Main Mall
Vancouver, BC V6T 1Z2
Canada
604-822-8476 (Phone)
604-822-8477 (Fax)

HOME PAGE: http://strategy.sauder.ubc.ca/hellmann

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain
+44 (0)1865 288937 (Phone)

HOME PAGE: http://www.sbs.ox.ac.uk/community/people/thomas-hellmann

Marianne Hudson

Independent

No Address Available

Jared Konczal

Ewing Marion Kauffman Foundation ( email )

4801 Rockhill Road
Kansas City, MO 64110-2046
United States

Josh Lerner

Harvard Business School - Finance Unit ( email )

Boston, MA 02163
United States
617-495-6065 (Phone)
617-496-7357 (Fax)

HOME PAGE: http://www.people.hbs.edu/jlerner/

Harvard University - Entrepreneurial Management Unit

Cambridge, MA 02163
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Robert E. Litan

Council on Foreign Relations (CFR) - Council on Foreign Relations- Washington D.C. ( email )

1777 F Street, NW
Washington, DC 20006
United States

Diane Mulcahy

Ewing Marion Kauffman Foundation ( email )

4801 Rockhill Road
Kansas City, MO 64110-2046
United States
816-932-1000 (Phone)

HOME PAGE: http://www.kauffman.org

Ramana Nanda

Harvard University - Entrepreneurial Management Unit ( email )

Boston, MA 02163
United States

HOME PAGE: http://www.people.hbs.edu/rnanda

Frank Partnoy

University of San Diego School of Law ( email )

5998 Alcala Park
San Diego, CA 92110-2492
United States
619-260-2352 (Phone)
619-260-4180 (Fax)

Joe Ratterman

BATS Global Markets, Inc. ( email )

8050 Marshall Dr.
Lenexa, KS 66214
United States

HOME PAGE: http://www.batstrading.com

Jay R. Ritter

University of Florida - Department of Finance, Insurance and Real Estate ( email )

P.O. Box 117168
Gainesville, FL 32611
United States
(352) 846-2837 (Phone)
(352) 392-0301 (Fax)

HOME PAGE: http://bear.cba.ufl.edu/ritter

Alicia Robb

University of Colorado at Boulder ( email )

1070 Edinboro Drive
Boulder, CO 80309
United States

Next Wave Impact ( email )

7455 Park Lane Road
Longmount, CO 80503
United States

David T. Robinson

Fuqua School of Business, Duke University ( email )

100 Fuqua Drive
Durham, NC 27708-0120
United States
919-660-8023 (Phone)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Duke Innovation & Entrepreneurship Initiative ( email )

215 Morris St., Suite 300
Durham, NC 27701
United States

Allison Schrager

Independent ( email )

No Address Available

Barry Silbert

SecondMarket ( email )

26 Broadway
12th Floor
New York, NY 10004
United States

HOME PAGE: http://https://www.secondmarket.com/

Erik R. Sirri

Babson College ( email )

231 Forest Street
Babson Park, MA 02457
United States
781-239-5799 (Phone)

HOME PAGE: http://faculty.babson.edu/sirri/

Dane Stangler

Ewing Marion Kauffman Foundation ( email )

4801 Rockhill Road
Kansas City, MO 64110-2046
United States
816-932-1044 (Phone)

Sharon Vosmek

Astia ( email )

833 Market Street
Suite 605
San Francisco, CA 94103
United States

HOME PAGE: http://astia.org/

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