Financial Term Of The Day-”Funding Gap”

Posted on July 9, 2008
Filed Under Series - Financial Term Of The Day! |



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. Funding gaps are also more likely at the 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.

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