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Long-term roadmap of your grantseeking plans
- What’s a Funding Strategy? A Funding Strategy is a long-term roadmap of your grantseeking plans. This concept is a key component of our curriculum at Learn Grant Writing, and we’ve seen it fuel sustained success for nonprofits and grantwriting freelancers alike.
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Apr 4, 2024 · A Funding Strategy is a long-term roadmap of your grantseeking plans. This concept is a key component of our curriculum at Learn Grant Writing, and we’ve seen it fuel sustained success for nonprofits and grantwriting freelancers alike.
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What is a funding strategy?
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A funding strategy encapsulates a business’s systematic approach to raising capital and managing its financial assets. It serves as a compass, guiding entrepreneurs through endless funding options, ensuring they land on the most favorable shores. A well-crafted funding strategy is not a one-size-fits-all undertaking.
- Bootstrapping
- Pre-Seed
- Seed
- Series A
- Series B
- Series C/D/E…
- Exit
Bootstrapped companies typically build from the ground up with personal savings or funds from friends and family.
Initial funding for startups
When personal savings run low, it’s time to do your first real funding round. By this point, you should have a well developed idea, some solid market research, be able to demonstrate your product/market fit, and have a solid understanding of your revenue opportunity and the risk of achieving it. You should also have either started product development, or have detailed plans mapped out for product development. Investors at this stage are generally friends, former work colleagues, angel investo...
You should now have a working prototype, and some trial users or even a small amount of sales revenue already. It’s time to do a bigger funding round to launch the full product and drive customer acquisition. Typical investors at this stage are mainly angels, but also include very early-stage VC funds (though most tend to focus on Series-A onwards)...
Early stage startups
By this stage companies will typically have £500,000 or more of revenue. You’ve clearly demonstrated product/market fit, and now it’s time to ‘scale’. This funding round gives you the funds to get your business scale ready, from assembling the right team, to deploying cash into the right marketing channels for your customer demographics, this is when it happens. This round is entirely VC territory. If you have consumer / retail-focused product, then you could consider crowdfunding, though gen...
Growth
By now you should have at least £3m of revenue or higher. Your business should be completely scale ready, and the funding round you do now should be directed almost entirely into marketing and sales channels, and scaling your customer and revenue growth.
Revenue Growth
The Series letter can go on indefinitely, but you get the idea here. By this point in time you’ve got a well and truly proven commercial model. Any new funds you raise go straight into growing your revenue by your proven sales and marketing acquisition funnel. If you have stable cash flow then it makes sense to start looking at a combination of equity and debt funding to reduce your dilution.
As your business grows, you will be approached many times by potential acquirers. It’s a good idea to regularly review your own ambitions for the company, and – critically – make sure your team is on-board with you at every step. You could look to exit by a competitor acquiring you, or if you want to continue your growth journey then an alternative...
Jan 7, 2020 · This requires putting a funding strategy in place that addresses the optimal funding mix and the best source of funds, given the corporate’s operational and strategic investment needs. Although there is not a “one-size-fits-all” funding strategy, general principles can be applied.
May 26, 2024 · Startup funding strategies play a critical role in the success and growth of new ventures. It is important to understand various options available, including bootstrapping, equity financing, debt financing, grants and competitions, crowdfunding, and convertible notes and SAFE agreements.
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A funding strategy is a plan of action used by an organization or business to identify and secure sources of funding. It is created to ensure that the organization or business is able to successfully meet its goals and objectives.
Jun 15, 2020 · What is a funding strategy? A funding strategy is a written and agreed plan that determines the financial requirements of an organization or group over a length...
