A strategy of a company is always linked to its funding. Sometimes the strategy forces a company to look for certain kind of funding, sometimes investors dictate the strategy, and sometimes companies must take a strategy when they have no funding and many models between those. Unfortunately, often start-up companies cannot plan and execute strategy and funding really systematically. Many companies just drift to one or another direction.
It is good that companies take into account the market and realities. If you cannot sell something, you must make some conclusions. But often better results are accomplished with more systematic work. And it also requires that companies should have better opportunities to find a funding strategy and model that fits to their needs.
Now a new company often starts with some small funding from founders and friends. Then they try to sell whatevet they can sell, i.e. consulting services, software pieces, and tailored solutions. They have a big vision, what they should do to make worldwide breakthrough. Then one day they can get VC funding. Then they should turn the company to execute a clear global strategy, not sell anymore whatever someone buys. And VC’s bring some “professionals” that don’t know the business, but have read many business management books and can make nice slides. And outcome is a chaos, everyone is disappointed.
So, what to do. One solution is to have opportunity to execute better defined strategy earlier and have a kind of step-by-step funding model. This means that also a company could already in an early phase get smaller funding and help from professional sources. It can be a top level business angel, VC’s seed money, or serial-entrepreneur that knows the business. Then all parties could develop the company more systematically by knowing what they want to do and have a plan to do it.
Grow VC wants to help to build these steps: find professional seed funding and then more money, get right people to find each other, and have tools to plan and communicate. What kind of seed funding you would like get in an ideal world? Is it a small sum from Silicon Valley VC, several business angels around the world who can also help your business locally in their region, or wealthy serial-entrepreneurs who have a real track record to create something new?
