After more than 20 years of investing in start-ups, AVAC Group kept seeing tech companies struggle, stall, and outright fail for the same reasons.
While start-up founders say they suffer from a lack of funding, the reasons they lack funding are almost always the same:
- Value propositions don’t address substantive market problems
- CEOs and management teams are lacking in areas important to investors
- Overcomplicated corporate and capital structures deter investors
- Inexperience with raising capital
- Insufficient governance to satisfy investor risk tolerance
Any one of these challenges makes it difficult to raise capital. In combination, they make it nearly impossible to attract sufficient investment to finance commercialization.
Carrot puts a solid foundation in place, making the path to financing and commercial success faster and easier.