The Dutch Good Growth Fund (DGGF) is pleased to release its latest report – the study on “Scaling Access to Finance for Early-Stage Enterprises in Emerging Markets: Lessons from the Field”. The report is a result of comprehensive research undertaken by DGGF with the support of consultants, experts, field builders, investors, and other local and international stakeholders. The report seeks to explore how to improve the scalability and viability of early-stage finance provision in emerging markets, thereby reducing the need for philanthropic capital and subsidies to the local providers of finance and support to early-stage enterprises.
Scope of the Study
For the purposes of this study, we focused on the challenge of financing of early-stage businesses that may be in pre-revenue or revenue stages, are in a pre-profit stage, but have demonstrated traction in the market and potential to scale up, and that are seeking to raise between USD 10.000 and USD 500.000 of investment.
In order to explore how to improve the scalability and viability of provision of early-stage finance, we used a landscape exercise to define and prioritize “archetypes of early-stage finance provision” as the focus for the report. We selected the three main “archetypical” models – business accelerators, business angel networks and early-stage venture capital funds, as well as the broader category of supplemental “non-traditional” debt options.
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