More than 44 million Americans collectively have over $1.5 trillion in student debt. Over time, the mounting pressures from this crisis have likely instilled fear among younger generations — they’re far more averse to launching new ventures. In fact, new businesses as a percentage of all U.S. companies dropped by 29% between 1977 and 2016. Employers can help by providing employee benefits beyond the current loan forgiveness programs. Fidelity Investments, for example, offers employees up to $2,000 a year toward loan repayment. Capital funders also have a part to play. Most investment capital goes to a small percentage of new ventures. But new models — like RevUp Captial’s revenue-based financing — are arising. While some of these models are a great start for organizations generating revenue, there are still opportunities for innovation to fund earlier stage investments that are inherently riskier.
