Is your Business Attractive to Venture Capital Partners and other Funders?

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FundingHub puts you in touch with a variety of Alternative Lenders that provide Business Loans for a variety of End-Goals and Ambitions.

Great – but what if you are looking for a Venture Capital Partner that can do more than provide the funds you are looking for – potentially unlocking access to new markets, resources and other assets that can help take your business from good to great?

Entrepreneur Magazine recently published an article on VC Funding, looking at it both from VC Firms and Company Founders / CEO's perspective.

While FundingHub does not operate in the VC-space we are in the space of providing guidance that Helps South African Businesses Grow.

Below then, for all those interested in VC Funding, we highlight some of the key points to consider when pursuing that (or any other) type of Financial Assistance.

  • The End-Goal remains the same: Company Growth.

  • The Financial Condition remains the same: An ability to ‘pay back the money’.

Getting “funding-ready” requires the ticking of a few boxes says Matt Brown, they are as follows:

Ability to Scale

Clive Butkow, CEO of Kalon Venture Partners, makes the point that, of all the criteria to consider before making an investment decision, the applicant company’s ability to scale is the most important.

“At Kalon Venture Partners we only invest in businesses if we believe we can make a 10X return on our investment when we exit the company. If we do not believe the business can scale, both in South Africa and globally, we will not invest,” he says.

Potential to scale is good, of course, but the applicant company also needs to demonstrate an ability to execute on that potential.

Do you have the capability to replicate your product offering and/or service to unlock your growth potential?

Mindset of Founders and CEO's

All companies have growing pains.

Founders develop the strategy and set the course. Often, however, it is the very same Founders that stand in the way of a company reaching its full potential.

“In my experience, what got you here will not necessarily get you there,” says Butkow. “Meaning the skills that helped you build a R10 million business are not the same required to build a R100 million business.”

The reality is that, sometimes, the road forward requires a CEO with a different skill set.

It doesn’t mean that you, the Founder, becomes irrelevant but it means having an understanding of (and appreciation for) the timing and reasons behind the need for new leadership.

What type of Entrepreneur are you?

The type of funding you need and type of business you seek to build really boils down to your ambitions, goals and lifestyle choices.

Perhaps you are looking for organic and steady growth as opposed to rapid and exponential expansion. That’s very possible as you seek a healthy work/life balance.

However if you are looking to conquer the world, careful consideration needs to be given to how your business model scales – and how that scaled business should be managed.

Whatever your requirements, FundingHub and our partners are happy to help with your Venture Capital requirements and point you in the right direction. Connect with us and grow your business, today!