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by reaperducer 2327 days ago
Startups don't need large capital markets.

The vast majority of new businesses in the United States don't get VC funding. They get small investments from friends, families, local banks, etc...

1 comments

Well, you do need capital markets, even small ones. For cultural reasons Finland really does not have them. For example, there are no local banks. The whole country has only a few large banks which all require collateral. And here, you don't really go asking for an investment from friends and families.

The main cultural difference here that failure is seemed extremely shamefull. And taking loans from friends and family more or less dubious. And if you failed, and had asked loans from friends and families, would be crushingly shamefull. Hence this creates fear, hence it's not really done.