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Alternative Funding Recommending Tool of ACCIÓ-Catalonia Trade & Investment
Published on 07 May 2020
Spain
This is the good practice's implementation level. It can be national, regional or local.
About this good practice
One of the lessons learned from the past is that when companies rely heavily on traditional banking they end up experiencing more difficulties to overcome a situation of restricted access to credit. This is one of the reasons that promoting the alternative business funding has become a must. Statistics show that in other European countries as well as in the USA funding other than traditional banking is higher than in Catalonia. We created this tool to shorten the gap.
Alternative funding comprises many options and categories which entrepreneurs and business owners need to learn about and choose. To help and guide them through this amount of instruments so that they can make the right choices, we decided to create a recommendation tool which can be found in the organization’s website.
This tool drives users through five questions which will lead them to the alternative funding suggestions that best fit the sector they operate in and the specifications of their projects and businesses. The questions they have to choose an answer from are:
1. The business sector of the company.
2. The stage the company is in (depending on product and billing)
3. The economic and financial situation of the company
4. The amount of money the company needs
5. The reason they need funding (creation, R&D, growth…)
Based on the answers the users give to these questions, the tool filters by the 120 currently identified funding instruments and it lists the ones that best meet their needs.
Alternative funding comprises many options and categories which entrepreneurs and business owners need to learn about and choose. To help and guide them through this amount of instruments so that they can make the right choices, we decided to create a recommendation tool which can be found in the organization’s website.
This tool drives users through five questions which will lead them to the alternative funding suggestions that best fit the sector they operate in and the specifications of their projects and businesses. The questions they have to choose an answer from are:
1. The business sector of the company.
2. The stage the company is in (depending on product and billing)
3. The economic and financial situation of the company
4. The amount of money the company needs
5. The reason they need funding (creation, R&D, growth…)
Based on the answers the users give to these questions, the tool filters by the 120 currently identified funding instruments and it lists the ones that best meet their needs.
Resources needed
- Phase 1- Definition and technical development:
1 person of the funding unit analysed the funding data (users, ecosystem, needs, procedures, habits, funding instruments…) and wrote down the main characteristics of the recommendation tool.
- Phase 2- Keeping the data updated: 1 person
1 person of the funding unit analysed the funding data (users, ecosystem, needs, procedures, habits, funding instruments…) and wrote down the main characteristics of the recommendation tool.
- Phase 2- Keeping the data updated: 1 person
Evidence of success
In 2019 the tool achieved 11.260 viewed pages that year, and 1.600 business had been advised on funding options.
The tool also helps to draw some conclusions about the business ecosystem in Catalonia. For ex. to know which types of instruments appear more often listed, therefore more needed.
It is extremely useful as well because alternative financing option have been increasing in high percentages. Venture capital investment alone has been raising around 50% the last 3 years.
The tool also helps to draw some conclusions about the business ecosystem in Catalonia. For ex. to know which types of instruments appear more often listed, therefore more needed.
It is extremely useful as well because alternative financing option have been increasing in high percentages. Venture capital investment alone has been raising around 50% the last 3 years.
Potential for learning or transfer
Other regions and countries can learn from this experience and apply this knowledge so that their business ecosystems can easily benefit from a well-structured and accessible alternative funding portfolio.
It is a very innovative tool to help startups navigate through the crowded landscape of alternative financing options.
It also helps to extract interesting data about the specific financial needs of the startup, which could greatly help the policy making process.
It is a very innovative tool to help startups navigate through the crowded landscape of alternative financing options.
It also helps to extract interesting data about the specific financial needs of the startup, which could greatly help the policy making process.
Further information
Website
Good practice owner
You can contact the good practice owner below for more detailed information.
Organisation
ACCIÓ-Catalonia Trade & Investment
Spain
Cataluña
Contact
European Projects Coordinator