👋 Hi there - it’s Egemen. Thanks for reading Scalable.
Funding.
One of the biggest challenges in building a startup.
Whether you’re bootstrapping, asking friends and family, or looking to get that angel investor or venture capitalist on board, you eventually need to check this box.
Today, I’m sharing a guide I’ve found this week to help you through the journey.
Here’s a snapshot of what’s on the menu today:
💡 Spotlight: Superhuman
🧠 Deep-Dive: The Funding Life Cycle
🗺️ Method: Funding Phases
⚾️ Catch: AI Survey
☝️ Scaled This Past Week: Sereact
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🧠 Deep-Dive: The Funding Life Cycle
From the earliest stages of bootstrapping to pitching venture capitalists, the journey is filled with decisions that can make or break a startup.
Understanding the funding life cycle, exploring available options, and preparing effectively for each stage are essential steps in navigating this complex process.
The funding life cycle breaks into key stages, each with its own sources and strategies:
Early days: Bootstrapping, friends and family, or bank loans. These help you get started but can be limiting.
Scaling up: Angels, venture capital (VC), and accelerators bring big money and expert advice but may cost equity.
Non-dilutive options: Grants, R&D tax incentives, and crowdfunding. These can be lifesavers but need time and effort to access.
Before you ask anyone for money, make sure you’ve done your homework:
Validate your idea. Does it solve a real problem people will pay to fix?
Keep your structure clean and simple—investors hate messy setups.
Build a clear financial plan. Know your numbers and be ready to explain them.
Practice your pitch. It needs to be short and sharp.
Nail your pitch, know your numbers, and stay flexible. Once the funding comes in, use it wisely, keep investors in the loop, and adapt as your startup grows.
🎙️ Working on a startup? Grab some time with me.
Tell me what’s going well - or not so well. I’m here to help.
🗺️ Method: Funding Phases
I’ve been browsing through resources recently, I’ve come across Standard Ledger’s Funding Guide, you should definitely check it out.
Here’s a quick snapshot of the most common phases, without getting lost in terminology.
Phase | Description | Typical Funding Sources | Key Considerations |
|---|---|---|---|
Early Stage | Initial steps to develop your idea and build an MVP. | - Bootstrapping | - Start small and stay lean. |
Growth Stage | Scaling your team, launching products, and acquiring customers. | - Angel Investors | - Be ready to give up equity. |
Scaling Stage | Expanding operations, entering new markets, and optimizing for profitability. | - Venture Capital (Series B, C) | - Show strong metrics and market traction. |
Alternative Funding | Non-dilutive options that provide financial support without giving up equity. | - Grants | - Research eligibility and application requirements. |
Later Stage / Exit | Preparing for an IPO, acquisition, or large-scale private investment to secure long-term sustainability. | - Late-Stage VC | - Build a clear exit strategy. |
🙌 I hope this comes in handy for you when you need it - it’s yours!
⚾️ Catch: AI Survey
Recent AI survey results have been shared by Bain & Company.
Result?
Bain's quarterly survey of executives finds that companies are just as bullish on generative AI as they were a year ago.
This is a great piece of data & feedback - you should check it out.
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☝️ Scaled This Past Week: Sereact
To develop ChatGPT-like AI robotics solutions that automate warehouse processes, Sereact secures €25M - it’s the scale of the week!
Here’s what Sereact does:
Automates pick-and-place tasks for robotics in logistics and other industries.
Develops AI systems enabling robots to navigate and act in new environments.
Provides real-time inventory management solutions for warehouses.