Let’s talk about The Gap.
We believe there is a significant gap between two areas of capital raise. On the lower end, we have current small enterprise banking, friends and family investment, and crowdfunding which focus on capital raise typically under €1.5 million. On the high end, large scale project financing, investments by existing listed funds, wealth managers and exchange listings focus on capital raise above and beyond €10 million.
Many small to mid cap companies, especially in our region, lack development capital for projects between €1.5 to €10 million. The gap in Europe is poorly addressed by the stock-picking attitude and herd behaviour of venture capital. Smaller offerings are too expensive, volume constrained, and time consuming to raise, thus deferring projects and suppressing innovation therein; larger ones are equally time-consuming due to an oligopoly of takers or investors, high cost, documentation, and regulatory barriers becoming more and more bureaucratic in the wake of ever more specific, post oversight EU directives.
Let's get to work.