Yesterday at SUP46 (Startup People of Sweden) I attended an #ExpertNight focused on funding for startups, a topic closely related to what we did and discussed about in class.
The event tried to answer some of the most common questions startups face: “When should you raise money? How much do you need? Who should you take funding from? Is it better to grow organically?”
Among the guests for the panel discussion were Tim Yi He (Northzone), Joakim Dal (GP Bullhound), Johan Crona (ALMI Invest), Henrik von Stockenstrom (FundedByMe), Anette Nordvall (Stoaf.se).
After a brief introduction, the panelists talked about how they scout for startups to invest in: some go to events and get to know people, some do generic market research to see if there’s anything interested that has been funded recently, others just filter the applications they receive.
Delar soffa med dessa ikväll #ExpertNight @SUP_46 @StoafSe pic.twitter.com/hwSvOjzLyr
— Anette Nordvall (@Nordvalla) March 4, 2015
The most important question is another, though: what is the selling point that captures the interest of investors when talking with startups?
The answers vary, but in general, investors want to see passion, they want to know where does the money go, they want to see replicable action and they need to look at a good business plan.
The team behind the venture plays an important role, but not always: Tim Yi He said it’s basically the most important thing, because otherwise you just have an empty shell; Anette Nordvall, on the other hand said that it’s something to focus on only in later stages of the investment.
The perfect definition of the relationship between investors and startups is “a marriage with a set divorce date”. Ultimately, it is all about money: they give you some, but they want to be sure that some more is going to be made.
The discussion was followed by a pitch on stage from a local startup (Raft), and a Q&A session.
#ExpertNight @ SUP46