HAVE YOU PLANNED FOR FUNDING YOUR STARTUP ADEQUATELY?

While some startup founders chase valuation, while others chase profitability, it may be prudent to remember that most startups need to be incubated, with substantial investment needs over the years. Founders need to find another source of cash flows that can be ploughed into their startups during the incubation phase. Corporates follow this model while incubating new businesses.

Of course, one option for startup founders is to raise capital from outside, which comes with the associated risk of losing control and chasing valuation with each capital raise round. However, many founders have taken the hard way of finding their own alternative cash flow stream(s) before investing in their startup.

Ultimately, a choice needs to be made.