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Challenge – Lack of Financing for Early-Stage Companies
Idea/Concept
Start-up
Early-Stage
Early-
Growth
Growth
FFFs,
Incubators,
Grants,
Bus. Plan Competitions
Banks,
Private Equity
Public Markets
Supply-side challenges
•
Banks are structurally risk averse
•
Few formalized early-stage
investors
“Valley of Death”
Demand-side challenges
•
Lack of quality deal-flow
•
Equity aversion of entrepreneurs
•
Entrepreneur skills in engaging
investors
Stages of Business Development: