There is a funding gap estimated to be between $50-$100 billion, with the majority of the shortfall hurting early-stage companies.
But what is the funding gap in the Venture Capital space? The funding gap in the venture capital space is the difference between the amount of capital that is available for venture investments and the amount of capital that is needed to meet the demand for venture backed companies. The venture capital funding gap is growing as the number of startups and venture-backed companies increases and the amount of capital available is not growing at the same rate.
It is the Early-Stage Funding that seems to be, currently, the most tricky.
Early stage fundraising involves a unique set of challenges and opportunities. To be successful, Founders must understand the process and be able to identify and attract the right investors. Not so easy. They must also be able to present their business plan in a compelling way that convinces investors of its potential. All this should be captured in a clear ‘Workflow’ like process.
The first step in early stage fundraising at Rodller is to create an attractive Deck. This should include a detailed description of the product or service, the target market, the competitive landscape, the financial projections, and the key personnel involved. Make sure there are always 2 Founders or more! Once the Deck is complete, the next step is to develop a fundraising strategy. This involves identifying potential investors, determining how much money is needed and how it will be spent, and creating a timeline for the fundraising process. Once the Rodller Fundraising strategy is in place, it’s time to start reaching out to investors. This can include attending investor conferences, making presentations to venture capital firms, and networking with angel investors. At Rodller we prefer to use our native Rodller Capital Portal, where we connect Investors with Founders.
It is very important to pitch the Deck to the Investor, that has a mandate match. The Investor Mandate outlines the investor’s goals and risk tolerance, as well as the expected time frame for results. The mandate also sets for decision-making and outlines the roles and responsibilities of the investor and the investment manager. The investor mandate is a critical component for Rodller Capital, as it provides direction and guidance on which Founder should be matched with which Investor.
The Funding Gap creates stress on the Early Stage Fundraising. Reason the more to streamline your process and go for the most predictable outcome.
About Rodller
Rodller (www.rodller.com) provides Digital Marketing, Fundraising, and Application Development Services. With offices in Singapore and France, we serve both Startups and Fortune 2000 firms. We use a next-generation Portal to combine the use cases of Digital Marketing, Fundraising, and Application Development in tangible processes.
