When it rains, pours. The dire outlook for startup funding in early 2022 due to ongoing pandemic-related uncertainty has only worsened following the global market downturn and the war in Ukraine.
This downturn is a particularly nasty setback for entrepreneurs hoping to advance climate-focused principles and social change. It’s getting It’s getting harder for green companies to raise money for large-scale innovation projects, mainly because most investors still associate “having influence” with high risk.
Now more than ever, green startups need to refine their strategies for attracting venture capital investments at scale, especially as they begin to evaluate their defining values in relation to their finances. Whether it’s specialized impact funds or venture capital firms, financiers tend to back companies that have demonstrated their ability to scale.
Due diligence is not about ticking boxes or filling out paperwork; it’s about creating long-term value for you, the portfolio company.
Here are five things green founders should keep in mind when looking for venture capital funding at the moment.
When it becomes repeatable you can scale it
Remember the moment you raised your original funding? You’ve probably submitted a minimum viable product and initial consumer research, and you’ve been supported.
But the investor climate has changed, and now your business must change too. The next step is not to prove your vision or tell an inspiring founder story, but to grow your existing business, attract new customers and customer segments, and expand into new regions.
All the while, you should be showing potential investors why they should put their hard-earned money into your scaling efforts.
Credit: techcrunch.com /