The Startup Velocity Question: What is the Right Funding Strategy?

For a venture funded startup facing velocity problems, it is a good idea to remember that before you go out to raise another round of funding, you have to have an answer to the velocity question: WHAT is hindering acceleration?

You CANNOT raise funding to figure out the WHAT.

And, you bring a great deal of credibility to the table if you can articulate the WHAT crisply.

I have always believed that clarity is the highest form of human intelligence.

If you can show clarity of understanding of what hinders velocity, and how to fix the problem, you can ask for reasonable amounts of money to do so from investors.

If not, bootstrap within your current runway until you develop such clarity.

Or shutdown and move on to your next venture.

Key Takeaways:

• Identify the specific factors hindering acceleration before seeking additional funding.
• Clarity in understanding and articulating the problem is crucial for credibility.
• Investors are more likely to fund clearly defined solutions to problems.
• Bootstrapping may be necessary to get to clarity on velocity issues.
• Be prepared to make tough decisions, including potential shutdown, if clarity can’t be achieved.

My Question to You:

What is hindering acceleration in YOUR startup?

If you think you need help, consider 1-on-1 Private Consulting with me. I will diagnose and create a path forward in an hour.

Photo Credit: Arek Socha from Pixabay

This segment is a part in the series : The Startup Velocity Question