Where is the Bridge, can’t find the Bridge?
The economy is bumpy, regulations are improving to access markets by small businesses to raise capital. But the bridge between capital and opportunity has still not been build. The two sides are divided by obstacles that have not yet been bridged. The issue is not the lack of capital but rather accessing it. You hear about Equity Crowed Funding just to find out you need to do the heavy lifting by driving investors to the crowed funding platform or you are just Post and getting Crickets.
Let’s review the two sides to a financial transaction. Capital (Investors) whether individuals or institution everyone is looking for a good deal, institution have a leg up because they have the resources to vet a transaction. Institutions are interested in larger transactions that fit their criteria. The individual investor in many cases do not have the recourses to vet the transaction leaving them at risk. The individuals need access to qualified transactions that are vetted, yet in many cases the needed resources are not available.
To many companies are not truly prepared to raise capital nor do they have a bridge to the investors who may have the greatest interest in the opportunity. Raising capital is a dysfunctional process for most and the needed infrastructure is wholly inadequate. We still suffer from “it is not what you know” it is “who you know” and if you do not have the know you are virtually out in the cold.