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V O L . X X V I I I N O. X I I I § 2 J U N E 2 7 , 2 0 2 2 24 S tartups typically depend on personal capital, friends-and- family-and-friend loans, even credit card debt. en they grow into other resources, including venture capital, angel investors, crowdfunding and small business loans. e range of options can be con- fusing, especially for startups without a proven track record. e financing landscape for start- ups has evolved over the years. Maine has long been a secondary market for startup capital, which continues to be clustered around urban tech hubs like Boston, New York City and San Francisco, says Joe Powers, managing director of the Maine Venture Fund, which finances established startups and often takes an equity stake. "is is the reason why Maine Venture Fund was created more than 25 years ago, and the need for invest- ment capital in Maine is still pres- ent," Powers says. "at said, there have been more investors looking at Maine companies over the years, in addition to more funds establishing themselves in Maine." Most recently, the pandemic has served to better connect outside investors with Maine companies given the shift towards remote-first office work. "e net effect is that it has become more viable to establish a high-growth startup in Maine, which is a positive development," he says. "is is a great time for Maine entrepreneurs and startups," says Carlos Mello, acting CEO of the Finance Authority of Maine. "e number of organizations, financing S TA R T U P S — F I N D I N G C A P I TA L CAPITAL GAINS Entrepreneurs tap everything from personal savings to outside investment and loans B y L a u r i e S c h r e i b e r F O C U S P H O T O / T I M G R E E N WAY Joe Powers, managing director of the Maine Venture Fund, says a growing number of investors have been looking at Maine startups over the years. FUNDING FIRST STEPS The Maine Small Business Development Centers says funding first steps include: Personal savings and cash Loans from family or friends Personal bank loan Refinancing or a second mortgage on real estate or other assets Credit cards Investments from partners Advance payments from contracts Credit from suppliers S O U R C E : Maine Small Business Development Centers