Capital architecture
Two primary capital layers sit inside the architecture: operating capital to build and run the model, and investment capital to support selected opportunities. The fund design is not being overclaimed at the outset; it is designed from evidence gathered during the scoping phase.
“Fund the architecture before fixing the economics.”
What capital needs to do
The architecture distinguishes between the capital needed to build and run the model, and the capital later directed into selected opportunities. Designing them separately keeps the proposition clearer and more investable.
Build and run the model
Core team, mapping, diligence, partner network, governance, measurement and platform logic.
Support selected work
Direct venture capital, specialist support, assets, facilities, working capital and follow-on needs for chosen opportunities.