After nearly 30 years of investing in start-ups, Verdex Capital 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
- Overcomplicated corporate and capital structures deter investors
- Inexperienced CEOs
- Inexperience with raising capital
- Insufficient governance to satisfy investor risk tolerance
Any one of these challenges makes it difficult to raise capital. In combination, it becomes very difficult to attract sufficient investment.
Carrot puts a solid foundation in place, making the path to financing and commercial success faster and easier.