In recent months I have attended some really interesting events on the topic of funding for scaling companies in Ireland.
The message that I have now heard repeated on many occasions, is, that at present there is more private capital available globally than ever.
This is a good thing for growing companies as it means there is an abundance of dry powder to be availed of from VCs, private equity houses, venture debt providers and other investors in order to scale and grow developing companies.
However, the second message that always follows shortly thereafter, is, that notwithstanding the abundance of private capital available, there are fewer investors than ever who are willing to write the early stage (smaller) cheques for really early stage companies.
So essentially, the seed round of funding is getting harder for companies to obtain. While on the other hand, there are more investors than ever who are willing to write the bigger cheques when companies go looking to raise a series B or C round of investment.
This means that the earlier stage companies are going to have to get creative in how they get those initial rounds of funding in.
An article in today's Irish Times reports on Irish-founded fintech firm Trezeo kicking off a campaign to raise €400,000 on crowdfunding platform Seedrs to enable it to develop its products.
Trezeo provides a really interesting product which provides self employed people (the Customer) with an account which aims to smooth the Customer's irregular income so that they then receive a regular weekly income. This naturally helps the Customer to have a steady cash-flow rather than the lumpy cash-flow many self-employed people are forced to struggle with.
There will be an abundance of early stage companies in the near future seeking alternative sources of funding such as Trezeo to develop and grow their businesses. It will be interesting to see what sort of concepts both investors and companies come up with to fill this gap in the investment market.
Irish-founded fintech firm Trezeo has kicked off a campaign on crowdfunding platform Seedrs as it seeks to raise more than £400,000 to develop its products