As your start-up matures, obtaining second- or even third-round funding may allow your business to expand and grow into new opportunities identified after your business was established.
Widget sales are booming – the competition is scrambling, demand is up, and the books are finally treading water. Your core management team has big ideas for the future of Widget Inc. Opportunity is abundant; but how will you fund that next big leap?
As your start-up matures, obtaining second- or even third-round funding may allow your business to expand and grow into new opportunities identified after your business was established. If your product or service has proven itself in the marketplace, you may be a candidate for an additional round of funding.
Some possible uses of post start-up funding include:
Damage Control
If your company is struggling to make ends meet, post start-up financing is not an effective way to address red ink.
Consider other methods of debt management such as refinancing, streamlining systems of production, and bootstrapping before looking for additional funding. Investors will not be interested in extending additional funds to companies that have not yet established themselves firmly in the marketplace.
Identifying Post Start-Up Funding Sources
The best source for post start-up funding may be your original investment partner. However, sometimes asking your investor-partner for additional funds can be a lot like asking your parents for a raise in your allowance. You’re going to have to really prove a need for it, and even then, your original funding source may have woke up on the wrong side of the financial plan.
Should this prove to be the case, there are additional sources to consider, including:
If you developed a list of potential investment partners prior to start-up, renew your contact with these individuals. By telephone or letter, convey the success your product or service has experienced, as well as your purpose for the post start-up funding. With a solid track record in hand, you may be surprised to find how many potential second-round investment partners you have.
In addition, you’ll be in a stronger position during the negotiation process, meaning you won’t have to give up as much control to achieve your desired result.
Tips For Maximizing Post Start-Up Funding
Developing An Effective Apartment Community Web Site
Positioning your web site as a knowledge source for tenants will increase the value of your rental community, long-term.Biophysics: Advanced Knowledge Absorption Techniques
Seeking to identify, define, and enhance the advanced sensory perception techniques inherent in all humans will undoubtedly lead to broader, more profound leaps in our progression as a human society long-term.Elevating Love: Strategies for Deepening Your Romantic Connection
A thriving, fulfilling relationship is one of the most significant investments you can make for your personal growth and the well-being of your partner. This guide explores how to deepen your romantic connection, ensuring that love continues to grow and flourish over time.