According to S&P Markets Global Intelligence, private equity financiers are sitting on ‘dry powder’ of around USD 2.49 trillion uninvested funds in 2023.

What is the resulting impact of this? For one, it means that – aside from traditional forms of bank finance – start ups worldwide are facing increased difficulties in obtaining private equity backed investments.

So what can entrepreneurs do to secure the equity financing which they seriously need to get their businesses of the ground with the apparent availability of so much funds?

1. Sustainability Driven Ideas

With the net zero target by 2050, all businesses need to demonstrate to potential investors their environmentally friendly credentials no matter what type of product or services they intend to deliver to the market.

2. Careful Budgeting
What could be the reason for the large amount of ‘dry powder’ funds. Uncertainty. As an entrepreneur, it is your job to ensure that you clearly explain the prospective investors clear and backable statistics as to how they will receive substantial yearly ROI.

3. The Team

We have all heard of the saying ‘to many chefs spoil the broth’, so careful selection of fewer talented and self-driven individuals who are prepared to back up the business may be more appealing to an investor than a larger and more fragmented team.

In conclusion, with investors ‘dry powder’ funding amounts increasing year-on-year at substantial levels from 2020 to 2023, entrepreneurs should take advantage of humongous potential funding opportunities whilst at the same time recognising investors concerns over sustainability, certainty and – most importantly – profitability.

If you are a young entrepreneur between 16 and 25, send us your project and we can assess if it is qualifies for some financing!

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