Key challenges faced by startups in accessing capital are mostly related to
(a) market
adoption risk (of their product/services)
b) implementation risk (ability to execute as
per the business plan)
(c) scalability (is there enough room for growth?)
(d) sustainability (how differentiated and competitive can the venture be on a long-term
(e) ability-to-generate-superior-returns
(f) exit risk (will monetizing the investment by the VC in a defined timeframe be an issue?).
I've observed one of the biggest hurdles for entrepreneurs to get access to capital has been
(a) limited access to relevant set of potential investors
(b) inadequate strategizing and validation of the business plan before it reaches the VC's desk.
Entrepreneurs have a deep understanding of their proposed venture, but their business idea/proposition needs to be positioned appropriately to the right audience. That is
precisely where an Investment Banking firm like ours fills the gap.