Statistics on fraudulent environmental claims, sources of capital and companies started with family members.
It may seem as if half the products introduced these days are positioned as environmentally correct. But overzealous marketers are being targeted by attorneys general across the country. Last fall a diaper company was forced to drop the word biodegradable from its packaging after an investigation by a task force of 10 state AGs; it was the first such settlement since inquiries began in late 1989.
Seed Capital Sources For High-Tech Companies
* * *
Family, friends 79%
Private investors 7
Venture capitalists 5
Public offerings, banks, 9
* * *
The most successful entrepreneurs, however -- those whose companies grow the most quickly -- initially had money from venture capitalists and angels. So says MIT's Edward Roberts, who looked at 600 high-tech firms for his forthcoming book Entrepreneurs in High Technology.
Increasing numbers of people want to start companies with a family member -- a sister, a parent, an in-law. So says Judith Langer, whose New York City firm, Langer Associates, conducts focus groups. Her hypothesis? Single people pouring their time and energy into new businesses think that having a familial partner can help emotionally.