Categories
News and Analysis Blog on Investors and Funding

Startup Funding Trends in 2025

As the entrepreneurial ecosystem continues to evolve, the world of startup financing is witnessing a dynamic and ever-changing landscape. The unprecedented growth and global reach of technology have fueled the emergence of innovative funding patterns, reshaping the traditional notions of investment in startups. These new trends in funding are revolutionizing the way businesses secure financial support in their early stages of development.

Within this exciting era of startup financing, entrepreneurs and investors are constantly adapting to novel funding mechanisms, exploring opportunities for growth and sustainability. The forecast for 2025 presents a compelling outlook, with an array of unique and diverse financing options becoming available to startups across different industries. This comprehensive analysis dives deep into the evolving trends in startup funding, shedding light on the patterns that are expected to shape the future of entrepreneurial endeavors.

Investment methodologies are no longer confined to traditional sources; ventures are now exploring alternative funding avenues such as crowdfunding, angel investors, and venture capital. Startups are embracing innovative approaches to secure the necessary capital for their growth and expansion. The interconnectedness of the global marketplace has paved the way for a more interconnected investment landscape, where startups can tap into a global pool of potential investors.

In this rapidly changing environment, understanding the shifting dynamics of startup funding is crucial for entrepreneurs and investors alike. By examining emerging trends, aspiring founders can better position their ventures for success, while investors can identify promising startups that align with their specific investment objectives. As the future unfolds, staying informed about the latest financing trends and leveraging them strategically can make a significant difference in the success of startups in the years to come.

The Importance of Understanding Startup Funding Trends

Understanding the current funding landscape is crucial for startups seeking financing in 2025. By analyzing the forecasted patterns and trends in startup funding, entrepreneurs can make informed decisions and adapt their strategies accordingly. This section provides an overview of why comprehending startup funding trends is vital for aspiring entrepreneurs.

Gaining Competitive Advantage

Staying ahead of the competition is essential in the fast-paced world of startups. By understanding the latest funding patterns, entrepreneurs can identify gaps or untapped opportunities in the market. This insight allows them to position their startups strategically and tailor their funding strategies, increasing the chances of securing financing in a crowded marketplace.

Optimizing Financing Options

Startup funding is not limited to a single source. It involves a diverse range of financing options, including venture capital, angel investors, crowdfunding, grants, and loans. By comprehending funding trends, entrepreneurs can identify which financing options are most likely to be available and suitable for their startup’s specific needs and growth stage. This knowledge enables them to optimize their fundraising efforts and increase the chances of securing the right financing at the right time.

Mitigating Risks

Startup funding trends can also serve as an indicator of the overall health and stability of the investment ecosystem. By monitoring patterns in funding, entrepreneurs can identify potential risks or challenges that may impact their ability to secure funding. Understanding these risks allows them to proactively develop contingency plans, mitigate potential setbacks, and ensure the sustainability of their startups.

  • Identifying emerging sectors and industries with high funding potential.
  • Spotting investor preferences and aligning startup pitches accordingly.
  • Keeping up with evolving regulations and compliance requirements.
  • Building a network of industry experts, mentors, and advisors based on the current funding climate.

In conclusion, understanding startup funding trends is crucial for entrepreneurs in 2025. It not only provides a competitive advantage but also helps optimize financing options and mitigate risks. By staying informed about the ever-changing funding landscape, aspiring entrepreneurs can increase their chances of success and navigate the challenging world of startup financing effectively.

Current State of Startup Funding

In today’s business landscape, the financing landscape for startups has witnessed significant changes and presents a dynamic pattern. This section aims to provide an overview of the current state of startup funding, discussing the emerging trends and patterns that shape the forecast for financing startups.

Investment in startups has become more diverse and innovative than ever before, with a range of funding options available to entrepreneurs. Traditional sources of funding, such as venture capital firms and angel investors, continue to play a crucial role in providing capital to early-stage companies. However, alternative financing models, such as crowdfunding and peer-to-peer lending, have gained traction in recent years, offering startups additional avenues to secure funding.

One notable trend in the current startup funding landscape is the increasing emphasis on sustainability and social impact. Investors are no longer solely focused on financial return; they are also keen to support ventures that align with environmental and social causes. This has led to the rise of impact investing, where funds are allocated to startups that demonstrate a dedication to ethical practices and positive societal change.

Funding Pattern Description
Seed Funding Early-stage funding provided to validate a business idea and develop a minimum viable product (MVP).
Series A Funding Funding round aimed at scaling the startup’s operations and expanding its market presence.
Series B Funding Securing funds to accelerate growth, improve product offerings, and capture a larger market share.
Initial Coin Offerings (ICOs) A crowdfunding method utilizing cryptocurrency tokens or coins to raise capital for blockchain-based startups.

One can also observe a geographical shift in startup funding, with certain regions emerging as prominent startup hubs. Silicon Valley in the United States continues to be a leading center for innovation and funding, but other global cities, such as London, Berlin, and Singapore, are also attracting significant venture capital investments.

In conclusion, the current state of startup funding is characterized by a diverse range of financing options, the increasing focus on sustainability and social impact, and the emergence of geographical startup hubs. Understanding these trends and patterns can help entrepreneurs navigate the funding landscape and secure the necessary capital to bring their innovative ideas to life.

Key Statistics and Figures for Startup Financing

In this section, we will explore the important statistics and figures related to startup financing in 2025. We will analyze the trends, patterns, and forecasts for funding startups in the upcoming years.

1. Investment Patterns:

  • Examining the investment patterns for startups in 2025 provides valuable insights into how funding is distributed among different industries and sectors.
  • Understanding the preferred funding sources, such as venture capital, angel investors, crowdfunding platforms, and government grants, can help startups strategize their financing approach.
  • An in-depth analysis of investment patterns will showcase the sectors that are attracting the most funding and the regions witnessing high investment activities.

2. Funding Forecast:

  • Looking ahead to 2025, we will delve into the forecasted funding landscape for startups, based on current trends and predictions.
  • Exploring the expected growth rates and total funding estimates will equip entrepreneurs and investors with crucial information for making informed decisions.
  • The funding forecast will highlight emerging industries and sectors that are projected to witness substantial investments, allowing stakeholders to identify potential opportunities.

By examining the key statistics and figures for startup financing in 2025, entrepreneurs, investors, and industry observers can gain a comprehensive understanding of the funding landscape. This knowledge will aid in adapting strategies, identifying investment prospects, and making informed decisions to facilitate the growth and success of startups.

Evolving Investor Preferences

Emerging trends and patterns in startup financing have triggered shifts in investor preferences for the year 2025. In this section, we will delve into the evolving landscape of investor preferences and explore the factors driving their decision-making process.

1. Focus on Impact Investing

Investors are increasingly prioritizing startups that demonstrate a commitment to social and environmental impact. This trend reflects a growing awareness of the need for sustainable solutions and the potential for businesses to drive positive change. Startups that align their missions with the United Nations Sustainable Development Goals (SDGs) are poised to attract significant investor interest.

2. Emphasis on Diversity and Inclusion

Investors in 2025 are also placing a greater emphasis on startups that prioritize diversity and inclusion within their teams and leadership. Recognizing the benefits of diverse perspectives, investors seek out companies that establish inclusive work cultures and demonstrate a commitment to equal opportunities. Startups with diverse founding teams and a focus on fostering inclusive environments are more likely to receive funding.

Furthermore, investors are increasingly valuing startups that address the challenges of demographic and gender disparities, seeking to support businesses that contribute to a more equitable and representative society.

Investor Preferences Key Factors
1. Impact Investing Alignment with sustainable development goals, social and environmental impact
2. Diversity and Inclusion Emphasis on diverse teams and leadership, commitment to equal opportunities

As funding trends and patterns evolve in 2025, startups should consider these shifting investor preferences when developing their business models and strategies. By demonstrating a clear alignment with impact investing principles and fostering diversity and inclusion, startups can enhance their chances of securing funding and building sustainable and successful ventures.

Shifts in Investor Focus and Criteria for Funding Startups

In the dynamic landscape of startup financing, trends have forecasted significant shifts in investor focus and the criteria they consider for funding startups in 2025. Emerging patterns suggest a departure from traditional investment paradigms, reflecting an evolving understanding of what drives startup success and sustainability.

Evolving Investor Focus

Investors are increasingly focusing on the long-term potential of startups rather than short-term gains. This shift in focus reflects a strategic approach to investment, where investors seek startups that have a clear vision, scalable business models, and the ability to adapt to changes in the market. Investors now prioritize funding startups with a strong value proposition and a sustainable competitive advantage, as opposed to solely seeking immediate financial returns.

Revised Criteria for Funding

The criteria for funding startups have also undergone significant revision. While traditional financial metrics such as revenue and profitability still hold importance, investors now consider a broader range of factors. These include market potential, traction, customer engagement, innovative technology, and team expertise. Startups that demonstrate a deep understanding of their target market, possess a unique product or service offering, and have a cohesive and talented team stand a higher chance of securing funding.

Furthermore, investors are increasingly valuing startups that exhibit a commitment to sustainability, ethical practices, and social impact. With a growing emphasis on environmental responsibility and corporate social responsibility, startups that prioritize these aspects align with the evolving ethical and conscientious investment landscape.

In conclusion, 2025 is expected to witness a transformation in investor focus and funding criteria for startups. This shift emphasizes long-term potential, a strong value proposition, and a revised set of indicators for success. Startups that adapt to these changing expectations and showcase their unique qualities in terms of market potential, innovation, and sustainability are poised to attract the attention and financial support of investors.

Emerging Technologies Impacting Startup Financing

As we look ahead to the year 2025, it is evident that emerging technologies will play a significant role in shaping the patterns and trends for startup financing. In this section, we will explore the forecasted impact of these technologies and how they are revolutionizing the way startups secure funding.

The Rise of Artificial Intelligence (AI)

Artificial Intelligence, often referred to as AI, is quickly becoming a game-changer in the startup funding landscape. Its ability to analyze vast amounts of data with unparalleled accuracy and efficiency has attracted the attention of investors and lenders alike. AI-powered algorithms can assess the potential of a startup, its market viability, and the likelihood of its success, thus providing valuable insights for decision-making in funding allocation.

Furthermore, AI-powered chatbots and virtual assistants are transforming the way startups interact with potential investors, streamlining the communication process and improving the efficiency of raising funds. These technologies have the potential to eliminate the lengthy and complex manual procedures traditionally associated with funding, making it more accessible and efficient for startups to secure the financial resources they need to thrive.

Blockchain and Cryptocurrencies

Blockchain technology and cryptocurrencies have gained significant attention in recent years, and their impact on startup financing is predicted to grow even more in 2025. Blockchain provides a transparent and secure platform for crowdfunding, facilitating direct peer-to-peer transactions without the need for intermediaries. This decentralization of funding allows startups to bypass traditional financial institutions, reducing costs and creating new opportunities for fundraising.

Cryptocurrencies, such as Bitcoin and Ethereum, offer startups an alternative avenue for raising capital. Initial Coin Offerings (ICOs) have emerged as a popular fundraising method, enabling startups to issue their own tokens and sell them to investors. This method provides a more accessible and globalized approach to fundraising, allowing startups to tap into a larger pool of potential investors worldwide.

Emerging Technology Impact on Startup Financing
Artificial Intelligence (AI) Enhanced analysis and decision-making in funding allocation, streamlined communication with investors.
Blockchain and Cryptocurrencies Decentralized crowdfunding, reduction of intermediary costs, globalized fundraising opportunities.

In conclusion, emerging technologies such as artificial intelligence, blockchain, and cryptocurrencies have the potential to revolutionize the startup financing landscape in 2025. Their ability to improve decision-making processes, streamline communication with investors, and provide alternative fundraising methods will shape the funding trends for startups in the years to come.

The Role of AI, Blockchain, and IoT in Attracting Investments

In the ever-evolving landscape of startup financing, new patterns are emerging that are reshaping the way investments are attracted. The integration of artificial intelligence (AI), blockchain technology, and the Internet of Things (IoT) has introduced exciting opportunities for startups to secure funding in the year 2025 and beyond. This section aims to explore the significance of AI, blockchain, and IoT in attracting investments, highlighting their potential impact on the funding landscape.

AI, with its ability to analyze vast amounts of data and make intelligent predictions, is revolutionizing various industries. Startups leveraging AI technologies to develop innovative solutions are gaining attention from investors. Similarly, blockchain technology, with its decentralized and secure nature, is fostering trust and transparency in financial transactions. Startups utilizing blockchain to disrupt traditional industries are becoming attractive investment opportunities.

Moreover, the IoT, which enables the interconnection of physical devices and data exchange, is creating a wealth of possibilities for startups. IoT-powered startups are not only enhancing operational efficiency but also generating valuable insights into consumer behavior, leading to increased investor interest. The convergence of these technologies is expected to create a synergy that will further amplify the attractiveness of startups seeking funding in the coming years.

Looking ahead, the forecast for AI, blockchain, and IoT in startup financing is promising. As these technologies continue to advance and mature, the potential for disruptive innovations will grow exponentially. Investors seeking high-growth opportunities are recognizing the transformative power of these technologies and the immense value they bring to startups. Furthermore, the global trend towards digitalization and automation fuels the demand for AI, blockchain, and IoT solutions, further intensifying the competition among investors to secure promising startups.

Key points:
1. AI, blockchain, and IoT are reshaping the startup funding landscape in 2025.
2. Startups leveraging AI and blockchain technologies attract investor attention.
3. The IoT enables startups to enhance operational efficiency and gain valuable insights.
4. The convergence of these technologies amplifies the attractiveness of startups seeking funding.
5. The forecast for AI, blockchain, and IoT in startup financing is highly positive.

Geographical Trends in Startup Funding

When it comes to the financing of startups in 2025, the geographical aspect plays a crucial role in shaping the funding patterns and trends. Understanding the distribution and flow of funding across different regions can provide valuable insights for entrepreneurs, investors, and policymakers. In this section, we will explore the geographical trends in startup funding, shedding light on the forecasted dynamics and highlighting the significance of location in the funding ecosystem.

Regional Distribution of Funding

One of the key factors influencing startup funding is the regional distribution of investment. Different regions around the world exhibit varying levels of attractiveness for investors, resulting in distinctive patterns in funding allocation. By analyzing the data, it becomes evident that certain areas emerge as hotspots for startup financing, while others lag behind.

For instance, Silicon Valley has long been recognized as the epicenter of startup funding, with its strong network of venture capital firms and angel investors. However, in recent years, there has been a shift towards new emerging hubs in Asia, such as Shanghai, Beijing, and Bangalore. These regions are experiencing a surge in startup activity and are attracting significant investment, indicating the diversification of funding opportunities across the globe.

Impact of Local Ecosystems on Funding

Besides the regional distribution of funding, the local startup ecosystems also play a crucial role in attracting financing. The presence of a supportive ecosystem that fosters entrepreneurship, innovation, and collaboration can significantly impact the availability and accessibility of funding for startups.

Several factors contribute to the growth of a thriving startup ecosystem, including the presence of leading universities and research institutions, a concentration of talent, a well-connected network of mentors and advisors, and robust government policies supporting entrepreneurship. Startups operating in such favorable environments are more likely to secure funding, as investors are attracted to the potential for innovation and growth.

Region Funding Patterns
Silicon Valley Traditional funding stronghold with a focus on technology and innovation.
Shanghai Rapidly growing startup ecosystem attracting significant investment from venture capitalists.
Beijing Leading hub for tech startups, benefiting from a strong government support and a vibrant tech community.
Bangalore Emerging as the Silicon Valley of India, witnessing a surge in funding for tech startups.

As we move into 2025, it is expected that these geographical trends in startup funding will continue to evolve. The emergence of new innovation centers, the development of supportive ecosystems in previously untapped regions, and the rise of global collaboration are all factors that will shape the future funding landscape.

Hotspots for Startup Investments and Regional Disparities

In the dynamic landscape of startup financing, it is vital to identify the hotspots for startup investments and understand the regional disparities that exist within the industry. By analyzing funding patterns and trends, we can gain insights into the areas that are experiencing significant growth and those that are lagging behind in terms of startup funding.

Investments in startups vary across regions, with some areas emerging as powerful hubs for entrepreneurial activity. These hotspots are characterized by a high concentration of innovative startups, a supportive ecosystem, and substantial funding opportunities. Identifying these regions can provide valuable information for investors and entrepreneurs looking to tap into promising markets.

Regional disparities in startup funding are also a crucial aspect to consider. While some regions may have vibrant startup ecosystems with robust funding options, others may struggle to attract investments. Factors such as access to capital, government policies, and industry networks can contribute to these disparities, shaping the growth of startups in different regions.

Forecasting trends in startup financing for 2025, it becomes apparent that certain regions are likely to continue dominating the startup investment landscape. These regions are expected to see sustained growth in funding opportunities, attracting startups from around the world. However, it is important to note that the dynamic nature of the startup ecosystem means that new hotspots can emerge and regional disparities can shift over time.

By understanding the hotspots for startup investments and the regional disparities that exist, stakeholders can make informed decisions about where to allocate resources and identify potential areas of collaboration. Investing in emerging regions can bring about innovation and economic growth, while addressing disparities can foster inclusivity and equal opportunities for startups across different geographies.

Impact of Government Initiatives

In this section, we will examine the influence of government initiatives on the forecasted trends in startup financing and funding patterns for the year 2025. The role of government in supporting and promoting startups has become increasingly important, as they recognize the potential economic and technological advancements that can be achieved through these ventures.

Policies and Regulations

Government policies and regulations play a crucial role in shaping the startup ecosystem. In order to foster innovation and entrepreneurship, governments are implementing various measures to create a conducive environment for startups to flourish. These initiatives include relaxed regulations, tax incentives, and simplified bureaucratic processes. Such policies aim to attract more investors and entrepreneurs, encouraging them to establish and grow their businesses within their respective countries.

Furthermore, governments are also focusing on strengthening intellectual property protection laws, which provides startups with the necessary legal framework to safeguard their innovations. This creates a sense of security among investors, prompting them to invest in promising startups without the fear of intellectual property theft.

Financial Support

Government-backed financial support plays a significant role in shaping the funding landscape for startups. In order to spur innovation and growth, governments are introducing funding schemes and grants specifically designed for startups. These initiatives aim to bridge the funding gap faced by startups in their early stages, allowing them to access capital needed for research, development, and scaling up their operations.

Furthermore, governments are also partnering with private investors and venture capitalists to co-invest in promising startups. This collaboration not only provides startups with the necessary funding but also opens up opportunities for mentorship, guidance, and networking.

Government Initiative Description
Startup Accelerator Programs Government-funded programs that provide startups with mentorship, resources, and networking opportunities to accelerate their growth.
Research and Development Grants Financial support provided to startups engaged in specialized research and development activities, encouraging innovation and technological advancements.
Export Promotion Initiatives Government initiatives that facilitate market access and international expansion for startups, fostering global competitiveness.

The impact of these government initiatives is multidimensional. They not only provide startups with the necessary financial support but also create an ecosystem that nurtures innovation, encourages risk-taking, and attracts domestic and foreign investments. By implementing policies and schemes tailored for startups, governments are laying the foundation for a promising future of entrepreneurship in 2025 and beyond.

Policies and Programs Driving Startup Funding

In order to support the growth and success of startups in the forecasted trends of 2025, various policies and programs have been implemented to drive funding opportunities. These initiatives aim to facilitate the financing process for startups, ensuring they have access to the necessary resources to thrive in the competitive business landscape.

Government Support and Incentives

One of the key drivers of startup funding is the active involvement of governments in creating supportive environments. Governments are implementing policies and providing incentives to attract and retain startups, encouraging innovation and economic growth. These measures include tax benefits, grants, and subsidies, which help reduce the financial burden faced by startups and provide them with the necessary capital to develop their business ideas.

Collaborative Investment Programs

Another significant factor driving startup funding is the emergence of collaborative investment programs. These programs bring together various stakeholders, such as investors, corporates, and accelerators, to fund promising startups. By pooling resources, expertise, and networks, these programs provide startups with enhanced access to funding, mentorship, and valuable connections that can propel their growth. Through such collaborations, startups can tap into a diverse range of financing options, increasing their chances of securing the necessary capital.

Overall, the patterns observed in startup funding show a shift towards a more supportive ecosystem, with policies and programs specifically designed to fuel entrepreneurial growth. These initiatives not only provide financial support but also offer mentorship, networking opportunities, and access to markets, enabling startups to overcome challenges and thrive in the ever-evolving business landscape of 2025.

Rise of Crowdfunding Platforms

In the year 2025, the financing landscape for startups has undergone significant changes. As traditional funding sources face challenges, a noticeable shift has been observed towards the utilization of crowdfunding platforms. These platforms have emerged as an alternative and innovative method of raising capital, offering a diverse range of opportunities for startups to secure financial support.

With the rise of crowdfunding platforms, startups have found a new way to access funding and engage with potential investors. This trend is driven by the changing patterns in the financial industry, characterized by a growing interest in supporting innovative and disruptive business ideas. Crowdfunding provides a platform for startups to showcase their ideas, build a community of supporters, and gather financial contributions to bring their concepts to life.

As we forecast the future of startup financing, crowdfunding platforms are expected to play a crucial role. The democratization of investment opportunities through these platforms allows individuals from various backgrounds to participate in supporting the growth and development of startups. This opens up avenues for entrepreneurs who may not have had access to traditional funding sources, enabling them to pursue their vision and contribute to the economic landscape.

The rise of crowdfunding platforms not only represents a change in the financing landscape but also a shift in the power dynamics within the startup ecosystem. Startups now have direct access to a wider pool of potential investors, which encourages competition and innovation. Additionally, crowdfunding provides startups with an opportunity to validate their ideas in the market, as success on these platforms often relies on attracting public interest and support.

  • Crowdfunding platforms offer startups a chance to tap into a global network of potential investors, expanding their reach beyond traditional geographic limitations.
  • Startups can leverage the power of social media and online communities to create buzz around their projects, attracting the attention of backers and gaining valuable market insights.
  • Crowdfunding presents a unique avenue for startups to build a loyal customer base even before their product or service is fully launched, fostering brand awareness and early adoption.
  • Investors, on the other hand, benefit from the transparency and accessibility of crowdfunding platforms, as they can easily discover and support projects aligned with their investment goals and interests.

In conclusion, the rise of crowdfunding platforms in 2025 signifies a shift in the financing patterns for startups. These platforms offer a unique and inclusive approach to raising capital, facilitating the growth and success of innovative ventures. By tapping into a global network of potential supporters and leveraging the power of online communities, startups can navigate the evolving landscape with increased opportunities for funding and market validation.

Effectiveness and Challenges of Raising Capital from the Masses

As we delve into the financing patterns and trends for startups in 2025, it is imperative to explore the effectiveness and challenges associated with raising capital from the masses. This approach, often referred to as crowdfunding, has gained considerable popularity in recent years due to its potential to democratize investment opportunities. However, it also presents a unique set of obstacles that entrepreneurs must navigate to successfully secure funding for their ventures.

Effectiveness of Raising Capital from the Masses

The rise of crowdfunding has transformed the startup funding landscape by allowing entrepreneurs to access a larger pool of potential investors. This approach taps into the collective power of the masses, giving individuals who may not have traditionally been considered as investors the opportunity to support innovative ideas and projects that align with their interests. These investments, even if relatively small individually, can add up to a significant amount of capital that can fuel startup growth and development.

Crowdfunding platforms have made it easier than ever for startups to showcase their value propositions and gain exposure to a wide audience. With the ability to reach potential investors globally, startups can leverage the power of social media and online marketing to increase their visibility and attract capital from individuals across different geographical locations. This democratization of investment opportunities can help startups bypass traditional financing barriers and secure funding from a diverse range of supporters.

Challenges of Raising Capital from the Masses

While raising capital from the masses can be a promising avenue for startups, it is not without its challenges. One of the primary concerns is the ability to stand out amidst the vast number of projects competing for attention on crowdfunding platforms. With so many startups vying for funding, it becomes crucial for entrepreneurs to effectively communicate their value proposition, differentiate themselves from the crowd, and capture the interest of potential investors.

In addition, managing and maintaining relationships with a large pool of individual investors can be complex and time-consuming. Startups must ensure transparency and communication while addressing investor concerns and providing regular updates on their progress. Building trust and credibility are crucial to sustaining ongoing support from the masses, as investors need to feel confident about the startup’s ability to deliver on its promises.

Furthermore, regulatory frameworks for crowdfunding vary across different jurisdictions, posing legal challenges for startups seeking to raise capital from the masses. Compliance with these regulations adds an additional layer of complexity, and entrepreneurs must navigate these requirements to ensure that their crowdfunding campaigns remain within the boundaries of the law.

Effectiveness of Raising Capital from the Masses Challenges of Raising Capital from the Masses
Access to a larger pool of potential investors Standing out amidst competition on crowdfunding platforms
Democratization of investment opportunities Managing relationships with individual investors
Global reach and increased visibility Compliance with varying regulatory frameworks