Supporting Businesses On A Journey To Excellence
Funding Sources For The Different Growth Phases Of A Business
The funding requirement of a business depends to a large extent on the growth phase of the business. By the same token, the growth phase also determines the suitability of the business for funding from the perspective of the different possible sources of funding available. For instance, a business in its inception phase is more likely to raise funding from angel investors and possibly from development funding agencies, than from any other source.
Only A Small Percentage Of Funding Applications Get Approved
Irrespective of the growth phase and the source of funding, funders have specific requirements a business (and the owners) must comply with in order for a funding application to stand a chance of being successful.
Owners of businesses waste a lot of their own and the funders' valuable time and cause high levels of frustration for everybody involved by not understanding this and approaching the wrong sources for funding. Another common mistake is not being properly prepared to see the process through to a speedy conclusion.
Those applications which are the best prepared because the growth phase of the business has been matched for suitability with the risk profile of the specific funder being approached and because the funding criteria of that funder are mostly satisfied by the applicant, stand the best chance of success.
It Is Not About The Business…
Business owners should understand that funders are in the business of generating a rate of return on their funding, not in creating or growing businesses or solving problems in or with the business. The latter is the happy result of a successful funding transaction, but is not the driving force from the funder's perspective.
Those business owners who understand this and also understand the different returns expected by and investment criteria of the different classes of potential funders are able to prepare their funding application accordingly and stand the best chance of getting funding.
Services
StrategyBlueprint Consulting assists businesses in all growth phases to prepare themselves to apply for funding from angel and venture capital investors. At the same time this also prepares them to apply to more conventional sources such as the IDC, Business Partners and the various other growth agencies.
In addition, we act as investment sourcing partner for R20 million in angel investment funds (investments of between R0,5 million and R2 million) and more than R150 million in venture capital funds.
The funding requirement of a business depends to a large extent on the growth phase of the business. By the same token, the growth phase also determines the suitability of the business for funding from the perspective of the different possible sources of funding available. For instance, a business in its inception phase is more likely to raise funding from angel investors and possibly from development funding agencies, than from any other source.
Only A Small Percentage Of Funding Applications Get Approved
Irrespective of the growth phase and the source of funding, funders have specific requirements a business (and the owners) must comply with in order for a funding application to stand a chance of being successful.
Owners of businesses waste a lot of their own and the funders' valuable time and cause high levels of frustration for everybody involved by not understanding this and approaching the wrong sources for funding. Another common mistake is not being properly prepared to see the process through to a speedy conclusion.
Those applications which are the best prepared because the growth phase of the business has been matched for suitability with the risk profile of the specific funder being approached and because the funding criteria of that funder are mostly satisfied by the applicant, stand the best chance of success.
It Is Not About The Business…
Business owners should understand that funders are in the business of generating a rate of return on their funding, not in creating or growing businesses or solving problems in or with the business. The latter is the happy result of a successful funding transaction, but is not the driving force from the funder's perspective.
Those business owners who understand this and also understand the different returns expected by and investment criteria of the different classes of potential funders are able to prepare their funding application accordingly and stand the best chance of getting funding.
Services
StrategyBlueprint Consulting assists businesses in all growth phases to prepare themselves to apply for funding from angel and venture capital investors. At the same time this also prepares them to apply to more conventional sources such as the IDC, Business Partners and the various other growth agencies.
In addition, we act as investment sourcing partner for R20 million in angel investment funds (investments of between R0,5 million and R2 million) and more than R150 million in venture capital funds.
"Financiers And Investors Are In The Business Of Getting A Return On Their Funding, Not In Creating Or Building Businesses."
What Do You have To Do Next?
If you require assistance in applying for funding for your business, please click here.
If you require assistance in applying for funding for your business, please click here.
