Funding

Getting Investment Money Can Help You - Fail Faster

Investment money buys time, people, development and marketing. It also lets you do more of whatever you are already doing — good or bad.

Most founders think getting funding would make their startup stronger.

And sometimes it does:

  • Money buys time.
  • It buys people.
  • It buys development.
  • It buys marketing.
  • It gives you more options.

But money has another quality that receives much less attention:
It lets you do more of whatever you are already doing.

If you understand the customer and have found something people genuinely want and need, this can be extremely powerful.
If you haven’t - it can simply make an expensive mistake happen faster.

Imagine this:
A founder has £100,000 available to launch a new platform.
That sounds like an advantage.
So they move quickly.
£35,000 goes into development.
£15,000 into branding and design.
£20,000 into marketing, and so on.
Six months later, they have a very nice polished product.

They also have very few customers.

The problem wasn’t that they didn’t spend well.
It was that they spent before answering some inexpensive questions:

  • Who really wants this? How badly?
  • What are they doing about the problem today?
  • What would make them switch?
  • What part of the proposed product actually matters?

The £100,000 didn’t make those questions go away.
It just delayed the moment they had to answer them.

Money is an accelerator

That is why fundraising shouldn’t automatically be seen as progress.
Raising £500,000 is impressive.

But the more important question is:
What will the money accelerate?

If it accelerates something customers are already choosing, excellent.
If it accelerates assumptions, complexity and headcount, the outcome may be very different.

This doesn’t mean founders should avoid funding. Not at all.
It means the startup idea should become strong beforehand.

Before asking:
How much can we raise?

Ask:
What have we today that is proven and ready to accelerate?

Money is extraordinarily useful.
But it is not a substitute for a strong startup.

Make it stronger. Then make it real.

Your next move

Working through a startup decision?

Talk it through with someone who’s got your back, and get clearer on what should happen next.

Strengthen your funding move