What we Offer
Working in the Fortune 500 arena gives us the experience, background and credibility in the global marketplace to lead the way in bringing best in class solutions to GenSource clients. We first assess the needs of the marketplace to begin the creative process of developing the most innovative solutions for our clients. Accurately identifying the needs and resources available in today's market place gives us the competitive edge to be the first to introduce superior solutions to market. That has allowed us to lead the way and will remain our legacy.
The Issue and the Opportunity
"There is a need in the market for financing vehicles that will take that first project risk," said Dan Goldman, chief financial officer of Chicago-based GreatPoint Energy. "There is a real gap in the market now."
Investors ranging from venture capitalists and private equity firms to Google and the U.S. government are gearing up to fill this funding gap -- known in the industry as the "Valley of Death." Up to now this gap has posed a challenge for venture capital firms and other early-stage investors."
The "valley of death" is a deep and wide gulf of money supply and demand in the marketplace for young and unproven enterprises. Lately it is actually closer in dimension to a “grand canyon” of need vs. availability of investment capital for entrepreneurs. The canyon’s depth signifies the amount of money required, and its width signifies the difference between what entrepreneurs are able to raise from founders, friends, and family and what is available from the formal venture capital industry.
In the 1980s the capital gap width was narrower, usually only approximately $250,000 to $500,000. Today the canyon’s depth for entrepreneurs is estimated at $500,000 to $1,000,000 or often even more. Venture capital firms have gotten larger, now usually raising and managing larger pools in the range of hundreds of millions of dollars. With this change, they no longer want expend the time and funds needed to manage small investments. They look to fund and manage a small number of multi-million dollar investments.
So where does this leave these early-stage entrepreneurs? They find that their sources of money - founders, incubators, friends, and family, move them forward but only to the edge of the canyon. They are left to peer down into the “valley of death” alone. Their good idea might just languish in this dry, unforgiving landscape. A lucky few entrepreneurs are able to secure “angel” investors, keeping them from falling into the canyon, narrowing the canyon width a small amount. But these angels are only ultimately helpful if they can provide an introduction to venture capitalists; companies that are the real “bridges” willing to make the follow-on investments necessary make the idea a fully functioning, profitable economic engine in our community.
Bridging the Gap, Focusing on Our Neighbors
GenSource's Private Equity division was formed to bridge this gap, focus on this emerging issue and create secure investment opportunities for our clients. Further, we have made it our mission to focus our efforts on ventures that live, work or reinvest in our investor’s communities . Our investors see their financial commitments in action, we call it “perimeter” investing.
We are GenSource
GenSource is a corporation formed to meet the needs of emerging growth enterprises, investment clients and companies. We can offer a myriad of investment vehicles including private equity funding, debt solutions, direct investing and real estate in the form of REITs.We focus on dependable income generation for our clients at acceptable risk, while providing services to early stage companies. This is done through investments that you might chose as an alternative to traditional, low risk /low return, routine investment products.