Developing a dynamic startup finance ecosystem

 

 The main objectives of this component are to: 

  • advisory_services_iconjpg_16817586093164337806329.jpg  Improve Palestinian firms’ ability to raise private investment by providing investment readiness advisory services.
  • ffpng_16715426344062800600185.png  Provide additional runway for early-stage startups and innovative SMEs.
  • oip_1jpg_168259778835041821905924.jpg To De-risk and mobilize private investments in Palestine.
  • angel_investorjpg_168259792990161514969481.jpg  To Promote organized angel investing in Palestine.


Component overview
The DSFE (Developing a Dynamic Startup Finance Ecosystem) component focuses on mobilizing private investment in the Palestinian ecosystem through addressing knowledge and experiential deficiencies in startup investing/fundraising on both the demand (entrepreneur) and supply (Investment) sides. IPSD is addressing these gaps through the following programs:

  • IGNITE Program: A combination of technical and financial assistance to support ambitious Palestinian Startups and SMEs in becoming investment ready. 
  • Co-Investment Grant Program: Investment matching grants to de-risk private investments and provide firms with longer runway. 
  • Program for Angel Investment Development (PAID): Raise awareness of Angel Investing and promote the development structured angel groups to become a sustainable source of pre-seed funding in the Palestinian ecosystem. 

 

 

IGNITE: 

The IGNITE Program aims to support innovative Palestinian Startups and SMEs in developing business financing strategies and attracting private investment. IGNITE will include both technical assistance and coaching as well as grant funding, delivered in two stages:

  • Stage 1: A 13-week coach led program that provides technical assistance to startups and SMEs through structured and one-to-one training and mentoring sessions focused on business financing and raising private investment.
  • Stage 2: A Pre-Investment Grants program that provide funding of up to US$50,000 for selected startups and SMEs to address shortcomings identified by the IRAS program with the aim of improving the likelihood that firms can subsequently secure investment within a short time frame. Only firms participating in Stage 1, IRAS program, may qualify to receive Pre-Investment Grants, though participation does not guarantee a grant award. 

 

Co-Investment Grant Program: 
 

The Co-Investment Grants Program provides supplementary funding of up to US$350,000 to firms that are able to raise investment from private investors; this helps early-stage firms develop, grow, and better capitalize the enterprises, thereby providing a longer ‘runway’ to achieve business development milestones that lead to stronger businesses. 

The Co-Investment (CI) grants provides additional funding beyond what investors are willing to invest. CI funding encourages investors to spread capital across more investments (portfolio strategy), thereby leading to more firms receiving the benefits of angel and other investors as partners.

 

Program for Angel Investment Development (PAID): 

PAID supports the development of new angel initiatives in the WB&G while potentially linking in regional ecosystems and Palestinian diaspora. PAID consists of two tracks that interact and complement each other in certain areas, the first is the Angel Investor Learning track and the second is the Business Angel Network (BAN) Technical Assistance track which aims at helping any existing or future initiatives that will develop angel investing in Palestine through performance-based grants.

The Angel Investor learning track is based on three pillars: awareness building, learning by sharing (educational webinars combined with hands-on workshops) and learning by doing (Due diligence support). The aim is to equip existing and aspiring angel investors with the necessary skills to originate and assess startup opportunities, negotiate deal terms, conduct due diligence, carry out post-investment monitoring, and build a sustainable portfolio.

The BAN (Business Angel Network) Technical Assistance is for individuals who are interested in setting up and running an angel investing initiative and/or are managing a network and want to do it more efficiently and professionally. This track provides educational support and ongoing technical assistance to emerging angel investing initiatives’ managers with the objective of establishing key processes, support through investment cycles, and designing a long-term development strategy.