Developing a dynamic startup finance ecosystem with a core focus on organized angel investing

Developing a dynamic startup finance ecosystem with a core focus on organized angel investing

Activity 2 addresses the lack of early-stage financing within the context of the Palestinian entrepreneurial ecosystem as there is a strong need to address knowledge and experiential deficiencies in startup investing/fundraising on both the demand (entrepreneur) and supply (capital) sides. To build an enabling ecosystem to address these gaps, Activity 2 will adopt a three-pillared approach to build capacity of investors, entrepreneurs and business enablers (i.e. entrepreneurial support organizations and firms):

  • Angel investor group building: developing structured angel groups while mobilizing complementary early stage capital sources through a combination of technical assistance and coaching to investors;
  • Investment Readiness Advisory Services (IRAS): improving entrepreneur ability to raise capital by providing investment readiness and investor engagement support; and
  • Catalytic Funding: offering investment readiness (pre-investment) grants to bridge the early commercialization funding gap to investment, and co-investment funding aimed at de-risking and stimulating private investment.

 

Through investment readiness advisory services, catalytic funding, and the mobilization of angel investors, IPSD’s interventions are expected to contribute towards improving funding availability for early-stage companies, as well as investment pipeline building of start-ups and high growth potential businesses ready for investment – also referred to as the “last mile” of deal flow.

 

The Investment Readiness Advisory Services (IRAS) program is intended to support the goals of improving the deal flow (demand) and investor preparedness (supply) sides of startup and early-stage finance – directly to entrepreneurs and startups, as well as to entrepreneurial support organizations, firms and other intermediaries (ESOs).[1]

On the demand side, the IRAS program will provide high-potential startups with [1] the knowledge and skills to develop appropriate financing/capital raising strategies; [2] the ability to understand, strengthen and measure key investor metrics; and [3] the know-how to effectively identify and engage investors. Bridging the divide between the demand and supply side, the IRAS program will improve [4] the ability for ESOs to develop a deeper understanding of startup investment readiness and the capital raising process so that they in turn may be more capable of supporting their startups in these areas. On the supply side, the IRAS program will improve [5] the perceived quality of deal flow seen by potential investors.