FUNDING: TURNING THE TABLES
How to survive in the funding winter?
With funding winters, unable economies, conservatism, those that did not actively pursue revenue, strategic partnerships, or government initiatives 5-6 years ago are truly suffering at the moment. Hindsight’s always 20-20, so what methods can companies try to gain that bridging round of funds to just get over the hump?
Revisit your product’s user and patient focus.
Instead of pushing your narrative, look inward and track the comments and feedback received and demonstrate engagement with your users. What does it gain? Possible adoption studies, in which the funds may be gained to further these studies.
Strategic partners bring quicker market expansion.
Some of the best distributors are manufacturers themselves – why? Because they would have tried initially to market within their own country, so would already have some traction or network. Some would work when packaged with other devices for an integrated approach to the same group of users.
Hanging by a thread is not sustainable unless ….
… unless it is a case where the market is not yet ready but is gradually gaining acceptance. Then it would work well to hang on just a bit more to see it turn the corner. If not? It’s ok to cut losses and try again, your earlier investors will appreciate it too, as their funds recovered can be more quickly re-deployed.
Note that none of the ways is about another creative way to approach VCs or some crowdfunding tactics – it no longer work. The tables have to be turned where the funders are coming after companies with good turnover (i.e., revenue and expenses), and looking to scale or become really profitable.
Let's navigate this funding winter together
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