Pre-seed and seed capital are normally used for early stage investments in a project or startup company, for proof-of-concept, market research, or initial product development.

There is a general shortage of these funds due to a combination of the high failure risk of technologies and business at the early stage and the relatively high cost of managing portfolios of seed investments, when compared with later stage venture capital investments.

The shortage of pre-seed and seed capital has given rise to the term 'Funding Gap', to describe the lack of funds between the stage when R&D is reaching proof of concept and the later product and business development stages when venture funds normally invest.

The Funding Gap is an impediment to the development of new technologies, new venture creation and deal flow for later stage venture capital investors.

TechCapital Management has experience in sourcing funds, managing early stage technology investments and commercialisation through license deals, joint ventures and new companies.