Funding, how can start-ups secure it? They first need to recognize where they are in their growth cycle. Next, they ballpark how much money they need to grow the business. Finally, networking helps them find a viable funding source. A panel of business experts in the start-up community using the Currnt platform and sponsored by P&G Ventures provided that advice to fledgling enterprises.

Get to the Next Stage  

Where a start-up is in their growth cycle often determines how much money they should seek. “Typically, an early-stage startup requests the funding needed to achieve its next KPIs, plus the time it takes to get to the next round of possibly receiving additional funds,” noted Andre Stolz, Managing Director at Budding Innovations. “The business need could be to validate an MVP (Minimum Viable Product) with consumers, conduct a pilot with a client, or convert the first client into paying customers. Achieving these KPIs (Key Performance Indicators) increases the valuation of the startup, which the next round of fundraising will be based on.”

A Broad Rather than Precise View  

The new venture provides rough rather than precise monetary estimates. “We are clear from Day 1 on the amount needed to spur acceleration and also the way we plan to use the funds, for instance, building new revenue streams, capability buildups, or ensuring a better runway ahead,” noted Mahesh Shastry, Founder and CEO at FlyNava Technologies FZE. “The amount has some logic but is mostly a gut feel based on multiples, market comparables, current themes, etc. There are even funding tables available for what to ask for in each case.”

Understand the Nature of a Partnership 

Where do the start-ups go to find their pot of gold: a possible funding source? “In person networking at events and conferences is a good starting point for building personal connections with potential investors or investing partners,” explained Sumant Parimal, Partner and Chief Analyst of 5 Jewels Research at Innogress. “I attended many start-up focused events to network with prospective investors. I used the Meetup.com platform mostly for locating local events and conferences where Venture Capitalists and Private Equity managers were also invited to participate.”

Finding finances is essential for startup companies. They need to understand where they are in the company lifecycle, make an educated guess on how much money the next business phase will require, and then forge personal connections to be successful, according to the Currnt startup expert panel. These connected individuals plan to discuss other fledgling business issues, and we will share their wisdom with you.