Authors: Raymond Ashieyi-Ahorgah, Reuben Offei Duodu
Abstract: This paper examines the critical role of blended finance structures in mobilizing private and institutional capital to support the growth of startups operating in strategically important sectors of the United States economy, including artificial intelligence, advanced manufacturing, cybersecurity, energy infrastructure, and critical mineral processing. While these sectors are vital to national security and long-term economic competitiveness, early-stage ventures in these areas face significant barriers in accessing capital due to risk profiles and market failures. This study proposes an innovative blended finance framework that integrates private investment, mission-driven capital, and catalytic financing mechanisms to reduce investment risk, increase domestic capital formation, and enhance startup scalability. Through analysis of secondary data from venture capital databases, government funding records, and economic impact studies spanning 2017-2024, we evaluate the economic impact of such models on GDP growth, job creation, and supply chain resilience. Our findings demonstrate that properly structured blended finance initiatives could unlock $127 billion in private investment over five years, generate 2.3 million jobs across key industries, and increase domestic production capacity by 35% in strategic sectors. The research presents policy recommendations to institutionalize blended finance as a national tool for accelerating innovation and strengthening America's economic sovereignty, positioning the United States as a global leader in strategic innovation.
DOI: http://doi.org/10.5281/zenodo.17799113
