Getting money (How to Get Money) for your growing business is hard work, especially when the economy is bad and interest rates are high. Alkira recently raised $100 million. It wasn’t easy, but they did it. Here’s what I learned that can help you too. According to a web post on the Fortune website which is written by Amir khan. He is Alkira CEO and founder.Here are the 3 Tips analysis by Alkira CEO and founder Amir khan.
1)Focus on Your Numbers:
A)Investors Want Proof: When the economy is bad, investors are careful with their money. They want to see that your company is doing well and growing. In 2023, a lot of money went to AI companies, making it even harder for other businesses to get funding. So, how did you succeed?
B) Show Strong Growth: You need to have solid numbers showing your company is growing. Provide proof like customer testimonials. For Alkira, it was important that their customers loved the “network infrastructure on demand” solution. Even though they’re not an AI company, they help businesses use AI quickly and securely, which helps them a lot.
C) Use Money: the last round of funding lasted nearly four years because they used the money wisely and didn’t overspend. This showed investors they would make the most of their money.
2)Find the Right Investors (How to Get Money):
A) It Takes Time: Even with everything in place, finding the right investors takes time. They had many meetings that didn’t lead to funding, sometimes for no fault of their own. It’s tough, but waiting for the right investors is worth it.
B)Two Types of Investors: There are two types of investors: some just give you money without fully understanding your business, and others are true partners who research your business and talk to your customers. In tough times, you need the latter. These investors understand your market and can make quicker decisions. They can also connect you with potential customers or partners.
3)Don’t Settle for Good Enough:
A) Excellence is Key: When money is tight, being excellent is key. Don’t rush your pitch or brand story. If your startup has strong numbers and a clear future vision, take the time to prepare well. Treat every investor meeting as if it’s the only one. Stay committed to your technology and don’t take shortcuts. They pioneered on-demand network infrastructure years ago, and now it’s paying off. If they had taken shortcuts, they wouldn’t have raised $100 million.
Key Takeaways:
Not every founder has the same advantages he did, like a good track record and support from Microsoft’s Elite Startup Program. But getting funding in tough times needs a good plan and a commitment to doing your best. Focus on strong numbers, find the right investors, and never settle for just good enough. Even in hard times, great companies with a clear vision can get the money they need.
Information sources and special thanks to Fortune