It’s an irony for small businesses that when it comes to finance, the more they need it, the less there is. With interest rates up for a fourth consecutive time in May and inflation forecast to be as high as 10% by the end of 2022 – a 40-year high – the economic outlook is highly uncertain. Traditional lenders are nervous and wary of increasing lending to SMEs, which already saw their debt rise by a quarter during the pandemic, and it’s no longer just struggling businesses that have a hard time securing funding.

Getting the backing of a Venture Capital Fund (VC) is often a key milestone for any growing business, it is, therefore, important to strategise both your preparation and approach.
 

Over the last few weeks, we have had the opportunity to speak with tens of startup founders and investors as part of our Private Beta launch for Truealpha.

Despite a record $330bn fundraising total, female founders in the US secured a mere 2.3% of venture capital in 2021 according to Bloomberg, the second consecutive year of decline and the smallest share since 2016. Amazingly, that figure is more than double the proportion of venture capital going to female-founded businesses in Europe which sits at just 1.1%.

Knowledge is power. This well-known phrase is often underplayed in the business arena, with the adage ‘cash is king’ taking primacy. While cash is, of course, fundamental to business, knowledge can often elevate a business to the next level – something I’ve come across at Connectd with a number of startups. 

Few numbers matter more to a founder than their company’s valuation. This is a fairly universal truth. But if you asked a focus group of founders which employees they valued the most, you’d probably get a few different answers.

Challau, the metaverse platform which enables users without a VR headset or high-end computer to enter immersive 3D environments, has raised a pre-seed round from 7percent Ventures, whose team first backed Oculus VR.

Fundraising is full time job, there is so much time and effort that goes into raising money, but it is worth it. We all know what the stats and figures show that there is a massive gender disparity when it comes to funding, and therefore although being a tough job – it’s even harder for women.

FourJaw, whose manufacturing data analytics platform is unlocking five-fold increases in shopfloor productivity, has secured a second round of angel investment and Innovate UK funding worth £1m, to accelerate its growth and support high-value-added manufacturers across the country. 

Flow Your Money (Flow), the money management app for freelancers and consumers has raised a €3.5m seed investment round led by Eleven Ventures. The round was joined by RockSalt, the venture arm of SaltPay, as well as Silverflow co-founder Robert Kraal (former COO Adyen), Hristo Borisov (founder and CEO of Payhawk), Marnix van der Ploeg (Booking.com) and Travel Health Group’s owner Arnoud Aalbersberg. The investment will enable Flow to scale up its platform, which makes it possible to automatically distribute incoming and outgoing money flows, taking the step towards 'self-driving money': smart, fully autonomous money management. Flow now also can expedite European expansion plans as it sets out to become the largest player in this fast-growth market. 

These days, entrepreneurs and business owners are actively dealing with a dynamic economy and this presents a unique problem for them. It means that they need to look for ways to raise enough capital for financing their business startup. But raising capital is not so easy and you have to be well aware of what you are stepping into before you start seeing any results.

The £12.09 million Digital Growth Grant will help tech start-ups and scale-ups tackle the challenges facing small firms and open up access to skills training and advice.

It has often been said that cash is king. This does not of course mean cash itself, but the phrase refers to a company’s cash flow and how it manages the flows of payments into and out of the business. Ultimately, turnover, and even profitability, are secondary in importance to cash flow.

European deeptech is enjoying a bit of a moment. Startups working in deeptech - translating new knowledge into tangible technology to address significant business and societal needs - account for close to a quarter of the continent’s startup ecosystem. And in 2021, that ecosystem invested a record $100B of capital.

Fumopay, known as ‘fumo’ is on a mission to demonstrate that technology innovation within the banking and financial services sector can have a direct impact on the lives of our young generation to help them become financially savvy, in a somewhat desperate attempt to help people avoid unnecessary personal debt.

– Amcor, who develop and produce responsible packaging solutions, announced the launch of Amcor Lift-Off, an open-call initiative aimed at supporting seed stage startups that are focused on innovative packaging solutions and related technologies. Amcor Lift-Off offers these startups a chance to secure an investment of $250,000, as well as operational guidance, to take their ideas to the next level.

Economies around the world are in the throes of sky-high inflation. Interest rates are creeping up. There is a historic crisis in Europe, energy prices are rocketing, and supply chains are clogged. It’s a scary time to start a business. 

R&D is a valuable relief the UK government offers in order to incentivise businesses to innovate and enhance productivity. The scheme is widely underutilised and over the course of several budgets the Chancellor of the Exchequer has sought to widen the scope for claiming this relief.  The most recent changes he made will be implemented from April 2023.

International Women’s Day may have taken place a few weeks ago on the 8th of March, but that doesn’t mean the conversation has to stop there. It is so important that although we highlight this day and all it stands for, we take this further and action all these thoughts and ideas.

Of all the areas of starting and scaling a business that most founders are unsure of it is raising finance. For some, the questions are more basic, whilst for others the questions can be more detailed. Perhaps two of the reasons why there are always so many questions about raising finance is that it is so important for the future growth of the business and indeed that it is such a complex area.