Orientation-Capital-part-2 Flashcards
What does capital gap refer to?
It refers to the difference between the funding required by a business and the available capital from traditional financing sources.
How can a capital gap affect a company?
This funding shortfall can hinder a company’s growth and development, limiting its ability to execute business plans, invest in research and development, or expand operations.
What challenges do startups face in securing funding?
Startups and newly established businesses often face challenges in securing initial funding for their operations. Traditional lenders and risk-averse investors may hesitate to support unproven concepts.
What is the Early-Stage Capital Gap?
It refers to the capital gap faced by early-stage ventures that are often associated with higher risks due to uncertain market acceptance and unproven business models.
What is the Growth-Stage Capital?
As businesses progress beyond their initial stages and seek funds to scale their operations, they might encounter a growth-stage capital gap or the need for larger amounts of capital to expand.
What is the Innovation and Research Capital Gap?
Companies engaged in research and development activities may struggle to secure funding for innovation initiatives, hindering their ability to develop new products or technologies.
What are Risk Perceptions in the context of capital gaps?
Risk perceptions are a cause of capital gaps, as traditional lenders typically require collateral to secure loans.
What are Market Barriers?
Businesses operating in niche markets or industries with limited access to customers may find it challenging to attract investors or secure sufficient funding.
What is Stunted Growth?
The lack of adequate funding can impede a business’s growth prospects.
What are Innovation Roadblocks?
Insufficient funding for research and development can hinder a company’s ability to innovate, leading to reduced competitiveness and missed opportunities.
What are Survival Challenges?
The capital gap increases the risk of business failure, as companies may struggle to cover operational costs or adapt to changing market conditions.
What are Government Initiatives?
Many governments offer support programs to address capital gap challenges, providing grants, subsidies, or low-interest loans to startups and small businesses.
What are Alternative Funding Sources?
Entrepreneurs can explore alternative funding options such as angel investment, venture capital, crowdfunding, or grants from government agencies or private foundations.
What are Business Strategies to manage capital needs?
Companies can adopt strategies like bootstrapping (self-funding), lean operations, and strategic partnerships to manage their capital needs more effectively.
What are some major VC and PE firms?
Foxmont Capital Partners, Ayala Corporation, ADB Ventures, Gobi Partners, ICCP Venture Partners, First Asia Venture Capital, Quest Ventures, JGDEV Digital Equity Ventures.
