Matching projects with capital: Exploring new approaches to funding access
In the recent FB IDEAs lunch & learn session Theo Adis presented Accelerate Funding Group’s project to build an AI driven tool bridging the gap between projects and private capital.
Closing a structural gap
Drawing on his experience across different roles in finance, Theo Adis highlighted a structural gap across innovation, development and funding. While capital may be available, identifying the right pathway to access it and presenting an opportunity in a way that resonates with those allocating funds is time consuming, requires specialist knowledge and networks, and is therefore often the limiting factor.
Driven from this insight, Theo develops an AI driven tool which is drawing from his network of funding partners and investors, and links projects across key characteristics to their funding priorities. By selecting a handful of recommendations that can be reviewed and targeted saves time and increases the chance of a successful pitch or funding application. The idea goes beyond being a brokering service for private funds and putting emphasis on building a business case that aligns with how lenders and investors assess opportunities. Framing the value proposition and structuring information enables those who make a living from providing money, such as lending committees, and are guided by KPIs to evaluate effectively and understand the opportunity.
Risk management mechanisms
Here, Theo highlighted the distinction between private funding and lending from a bank: Banks typically prioritise track record, credit record and demonstrated credibility. In contrast, private lenders, ranging from individuals to funds or larger organisations, may have varied risk assessments and place greater weight on future growth potential and asset value.
The discussion highlighted that funding is also rarely provided as a single upfront amount. Instead, it is often structured around milestones, with staged payments tied to progress and risk mitigation. Mechanisms such as staggered funding, due diligence processes, and security requirements, be it in the form of assets or contractual rights, are used to distribute risk. And speaking of risk: Private funding markets are not regulated. While they can offer flexibility and speed, they also require careful due diligence. Costs, terms and risk exposure need to be assessed by both founders and investors.
Finance as a key interest for founders
The audience was engaged with multiple questions around total cost of capital over time, interest capitalisation, the opportunity for gap funding, and participants expressed interest to contribute to the development of the tool by providing their details for further case studies. The tool is developing based on feedback and Theo signalled that in next steps, he wants to look into equity funding, co-contributions and grants.
The lunch & learn session again created space for early-stage ideas to be tested, challenged and shaped through real-world input from a collaborative network.
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