All founders need help when starting up, and that help doesn’t have to be costing an arm and a leg. Scord connects top students of business, economics and law to entrepreneurs of high-tech start-ups. We’ve asked Alexandra Maas, Scord’s board member and consultant, to share with us the steps they take to help startups get financing.
Helping startups get financing
Every startup has at least one thing in common; they need financing to grow into a potential market leader. There are many ways in which a startup can look for its financing, which can turn the path towards financing into a maze. This is exactly what many corporate finance boutiques promise, to guide and support startups through. It can be very helpful for a startup to collaborate with such an advisor that is experienced with the different financing possibilities and the opportunities they resemble. But it is even more important that the advisors’ approach suits the startup perfectly for the right investors to be involved.
1. Choose a financial advisor who understands startups
That is why the chosen financial advisor must fully understand how starting businesses work and how business opportunities develop at startups. This is sadly where a very unfortunate mismatch often occurs. Most corporate finance boutique advisors offer financing advice to startups after having worked for big corporates for many years. Although they might have had great careers and experience in a corporate environment, they do not always understand that it is an entirely different ballgame when it comes to startups. While many startups have a seize-the-day mentality that makes them resilient and eager, corporate finance boutiques are often not used to the day-to-day changes that this mentality might imply and how this is a fundamental part of the appropriate search for financing.
2. Get connected to the right people for your startup
The magic is in connecting the right people to the startup. It can make a great difference in finding the right investors, as the advisors then truly understand the goals and approach of the startup. This is exactly what Scord is committed to doing. As a start-up for startups, Scord connects bright, experienced and seize-the-day kind of people to startups that are looking for financing. These people give the startup the insights into the business and financing possibilities that they need, as well as the eagerness that is what drives so many starting businesses. It is this match that allows the startup to find the financing opportunities that suit its stage and plans, leading to a most fitting approach to attract its best-matched investors.
3. Be fully prepared when approaching potential investors
But simply addressing the financing struggles of startups can sell the startup short. For the startup to be fully prepared when it approaches potential investors, it is the foundation of the business that needs to be at its best; the business plan and the (often underrated) legal protection of the startup and its founders. Before reaching out to investors, Scord provides full support for the startup to blossom in both perspectives. Thereby Scord helps the startup to fruitfully use their eager seize-the-day mentality towards successful fundraising.
Get in touch with young professionals from Scord and let them help your startup with affordable and practical advice in the fields of marketing, tax/legal and financing: