Funding Gap

Funding Gap
The amount of money needed to fund the ongoing operations or future development of a business or project that is not currently provided by cash, equity or debt. Funding gaps can be covered by investment from venture capital or angel investors, equity sales, or through debt offerings and bank loans.

Most often used in context with early-stage companies during the initial stages of research, product development and marketing.

The ease with which a very young company receives funding depends on many factors including the viability of the business model, barriers to entry for that particular industry, and overall economic and market conditions. When the stock markets are strong, venture capital investors are much more likely to fund startup companies, and may even become less stringent in their eligibility criteria.

Funding gaps are also more likely at these early stages because a company won't know what its full operating expenses will be until it reaches a more mature stage and, at first, there aren't likely to be any meaningful revenues coming in.

Investment dictionary. . 2012.

Игры ⚽ Поможем сделать НИР

Look at other dictionaries:

  • funding gap — See liquidity mismatch. American Banker Glossary …   Financial and business terms

  • net funding gap — grynojo finansavimo spraga statusas Aprobuotas sritis kredito ir finansų įstaigos apibrėžtis Neigiamas skirtumas, gaunamas iš numatomų pinigų įplaukų sumos atėmus numatomų pinigų išmokų sumą. atitikmenys: angl. net funding gap šaltinis Lietuvos… …   Lithuanian dictionary (lietuvių žodynas)

  • funding — Used to describe the refinancing of a debt prior to its maturity (the same as refunding). In corporate finance refers to the floating of bonds to raise finance and levels of capital. Bloomberg Financial Dictionary See also: refunding. Bloomberg… …   Financial and business terms

  • gap funding — noun Money provided by the government to private concerns in order to ensure that the development of unused and unattractive sites is profitable • • • Main Entry: ↑gap …   Useful english dictionary

  • gap — A term used by technicians to describe a jump or drop in prices; i.e., prices skipped a trading range. Gaps are usually filled at a later date. The CENTER ONLINE Futures Glossary (1) As a measurement of exposure to interest rate risk, the amount… …   Financial and business terms

  • gap — noun (C) 1 A SPACE a space between two objects or two parts of an object because of something that is missing (+ in): The neighbors dog got in through a gap in the hedge. (+ between): Lou has big gaps between her front teeth. 2 DIFFERENCE a big… …   Longman dictionary of contemporary English

  • Darién Gap — Coordinates: 7°54′N 77°28′W / 7.90°N 77.46°W / 7.90; 77.46 …   Wikipedia

  • Cumberland Gap Tunnel — Carries 4 lanes of U.S. Route 25E Crosses Tennessee Kentucky state line underneath Cumberland Gap …   Wikipedia

  • Bomber gap — The bomber gap was the unfounded belief in the Cold War era United States that the Soviet Union had gained an advantage in deploying jet powered strategic bombers. Widely accepted for several years, the gap was used as a political talking point… …   Wikipedia

  • 10/90 gap — refers to the statistical finding of the Global Forum for Health Research that only ten per cent of worldwide expenditure on health research and development is devoted to the problems that primarily affect the poorest 90 per cent of the world s… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”