WHY 98% OF START-UPS ARE REJECTED?

Recently, the start-up topics have been the media headlines, which intrigued us and we decided to look into the matter and trying to provide an answer to the question of unsuccessful fundraising: 2% is decidedly a very low rate, which the article’s author explains with six sins.

Above all, we do think that there has been much emphasis and enthusiasm on start-up as a way to launch businesses, which has been inflated by the media; we don’t say that start-up is like a scoop, we do say that it has been overstated before evidence.

The “sins” listed in the article should be called and actually are missing points made by the fundraisers. On top of everything, there is a basic question: HOW TO SWITCH AN IDEA INTO A PROJECT: the former although being a good one isn’t a venture, the latter should comply with the feasibility’s criteria along with justifications and assumptions.

By and large, inventors aren’t necessarily entrepreneurs: they have a different way of working and different background as well. Working on an idea that has been well elaborated in a laboratory with a complete formula isn’t like running it as a business and to make it happens deserves an entrepreneurial spirit.

In the above understanding, we tried to match what the author said with what we did presenting the Project JAMBO FUND.

Going through the article’s recommendations to avoid the failures, we can say that the presentation of JAMBO FUND, since the very first announcement, avoided the “six sins” and the “Seven questions about JAMBO FUND ”, are a further justification in support of the Project (https://www.linkedin.com/post/edit/6275982994779971584): the Post spelled out the reasoning behind and why the Investors should endorse it (see also: https://ascaniograziosi.net/blog, which give account of the research we did).

We investigated on the international context and reviewed the narrative of Africa’s development trend; then, we completed the exercise with findings and conclusions, which drove to the design of JAMBO FUND AS A GATEWAY TO AFRICA’s INCLUSIVE GROWTH: vision, mission, assumptions, justifications, objectives, target. In addition to, we provided the Project with both a Model: https://www.linkedin.com/feed/update/urn:li:activity:6256035102674026496/ and indicated our career as a field man with expertise on the funds’matters.

In our line of business – financing projects – which is the relevant missing point? Taking from our field experience, we witnessed situations where projects failed because of the shortage of the necessary working capital or its size wasn’t appropriate for the business inception’s length; and when the lenders financed such projects without investigating on the working capital, they lost the money lent out: the borrowers became defaulters. Combien de fois nous avons réitéré le message sur l’importance du Fond de Roulement, à l’époque des missions dans l’Afrique Sub-Saharien ?

Fundraising is a serious matter and currently, even training courses are proposed on the subject: converting people’s failures into an opportunity!

Autore: graziosiascanio

I am doctor in Economics. I am based in London (+44 7943286549) and Rome (+39 3273211887). I do have a banking background and specialization in Microfinance, Project Management-Monitoring-Evaluation, Risk Fund. I have accumulated more than 30 years of experience in 28 Countries and collaborated with the major international development organizations such as World Bank Group, Ministry of Foreign Affairs-Italian Co-operation, European Union, Danish Cooperation, FAO, UNDP and Others in East Europe, Caribbean, Central Asia and Africa.
 SERVICES
- Investment Advisor
- Design, Manage, Evaluate Credit Projects Financial inclusion - Trust Funds - Guarantee Funds
- SME financing & Private Sector Development
- Association in submission Tenders dossiers & EOI
- Assist MFI decision makers to understand situations and take action
- Project Management & Evaluation
- Drafting Technical proposals & Methodologies
- Review and revision MFI strategy & Management
- Investigation for markets opportunities 
- Design credit models & Launch new products
- Capacity building, Business development, Financial inclusion
- Downscaling & Up scaling operations
- Backstopping position to follow-up multiple field activities
- Training Managers & Field staff. I launched the Service A PROJECT FOR MFI DECISION MAKERS. enquiry: graziosiascanio@aol.com I am Founder and Owner of 2030 FINANCIAl INCLUSION with LinkedIn, https://www.linkedin.com/groups/4682884 I published The Gateway to Africa Inclusive Growth, JAMBO FUND https://www.morebooks.de/store/gb/book/the-gateway-to-africa-inclusive-growth-jambo-fund/isbn/978-620-2-28375-5

One thought on “WHY 98% OF START-UPS ARE REJECTED?”

  1. There a good number of people in our community with good business ideas but their ideas feds away due to lack of funds to transform these ideas into business reality. We are working on day to day with the good number of such clients. We take them through by listening to their ideas so as to identify their needs. The model proposed in this project would work the best to such client segments. Through word of mouth we always manage to acquire clients/customers and create a network, and begin an entrepreneurial journey. Traditionally success of startup, more times relies initially on the support from friends and family but with the availability of financial institution we now have invested towards assisting such group of entrepreneurs so as to help them achieve their dreams hence improving their life. Sometimes that means their time, their emotional support, or in some cases their capital. Because, in the end, who wants to see those near and dear to them struggling?

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