Endeavor

Endeavor Lebanon Impact Report 2013–2014

Issue link: http://endeavor.uberflip.com/i/317370

Contents of this Issue

Navigation

Page 21 of 63

Wamda Research Lab's survey results reveal that in Lebanon, 26% of the entrepreneurs surveyed consider that investors do not offer enough value beyond cash and that this is the biggest challenge they face when obtaining investment. On the other hand, investors have complained that companies that approach them often lack solid business plans and financial models making them less attractive as investments. Crowd funding, a new and alternative method of raising capital, has widened fundraising options for entrepreneurs. MAIN SOURCES OF FUNDING Kafalat/other loans Private funding/shareholders VC/Angels Profit reinvestment Family & friends Own funds 22% 3% 38% 39% 28% 83% Note: Multiple responses allowed Roughly 86% of the entrepreneurs surveyed by Endeavor Lebanon have used their own money and/or their "family and friends" funds as a source of capital. Loans are a more common source of funding than Venture Capital and angel investors. Around 50% of entrepreneurs report not having used any source of professional investment or loans. Access to finance for Lebanese entrepreneurs is rapidly evolving and the role of facilitators in the entrepreneurship ecosystem is crucial in the coming phase. Through its network of mentors, Endeavor helps its entrepreneurs grow and be investment-ready. Furthermore, Endeavor helps entrepreneurs access smart capital and key investors at the local, regional and global level. FINANCE QUOTED "Diwanee's success was possible thanks to a group of regional private investors that believed in our team and the opportunity to build a large, regional digital media success story out of Lebanon. Unlike Regional VCs, these investors understood what it takes to build Diwanee as it is today." Delphine Edde, Co-founder and Publishing Director, Diwanee Endeavor Entrepreneur A recent groundbreaking measure by the Central Bank, Circular 331, significantly expands financing opportunities for entrepreneurs and is likely to change the way Lebanese companies are funded. In order to boost entrepreneurship in the knowledge economy, $400 million will be made available to Lebanese companies through banks and funds. 22

Articles in this issue

view archives of Endeavor - Endeavor Lebanon Impact Report 2013–2014