Transforming Startup Funding

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Welcome to the Rodller Newsletter. This month we are covering
startup-funding

 

Welcome to the Rodller Newsletter. This month we are covering:


1. Startup concentration remains in the USA

 

2. The Rodller mission to reduce the funding gap

 

3. Impact Sourcing is now the most wanted Deals Sourcing topic in the Rodller Portal

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Startup concentration remains in the USA

The United States is widely regarded as the highest launching pad for startups worldwide and is home to Silicon Valley in California, which has become the world’s leading hub for tech startups. According to venture capitalist data, nearly 50% of all the startups valued at over $1 billion were founded in the U.S. This is followed by China, India and the United Kingdom. The United States has the highest startup rate of any large country because of its culture of entrepreneurialism. It offers a unique blend of resources, including a strong venture capital industry, a diversified talent pool, and access to global markets, that create a powerful combination for creating new businesses. The U.S. also has an entrepreneurial spirit that encourages individuals to take risks and develop innovative businesses. Additionally, America’s legal and regulatory systems provide an almost unparalleled level of protection for entrepreneurs and investors, helping create an environment that is extremely attractive to entrepreneurs.

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The Rodller mission to reduce the funding gap

Startups often suffer from a “geographical funding gap” because venture capital and other types of early-stage funding are heavily concentrated in certain geographical locations, primarily in large cities. Smaller towns and rural areas tend to be neglected, creating a funding gap for startups based in less populated areas. This is largely due to the fact that venture capital firms and other investors are more likely to invest in startups in major metropolitan areas, as they tend to have access to larger and more sophisticated networks of talent and resources. Additionally, venture capital firms may be more comfortable investing in startups in areas with existing ecosystems of established companies, as well as those that are geographically close to large financial centres. As a result, startups outside of these urban hubs may find it difficult to break into the venture capital market. Rodller addresses this by creating ‘Deal Sourcing’ hubs, where we totally ignore geographics. Anyone can Find Capital or Invest Capital anywhere. We at Rodller are determined to reduce the Funding Gap, because it is immoral and slows down global progress.

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Impact Sourcing is now the most wanted Deals Sourcing topic in the Rodller Portal

For quite while Fintech and Blockchain were the leading Deal Sourcing hubs in the Rodller Portal. But it has now been overtaken by Impact related deals. Impact related venture capital fundraising has been steadily increasing over the past few years. According to data from Pitchbook, US impact venture capital deals reached a record high of US$3.2 billion in 2019, a 34.5% growth from 2018. Additionally, the average deal size increased by 13.6% to US$5.9 million. With more investors interested in impact-related investments, we can expect to see further growth in the 2020s. The impact investing sector is growing exponentially, and the future of impact investing looks very promising. Impact investing has been shown to help generate both positive financial returns and measurable social and environmental impact. This unique combination makes it an attractive investment strategy for various types of investors. The impact investing sector is expected to continue its growth as more investors seek to align their investments with their values and increasingly recognize the long-term benefits of investing in solutions to pressing global issues.

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