When a Startup startup get initial funding, What Happens Next?


initial funding is the lifeblood of any entrepreneurship. Getting the right funds is a huge milestone in itself. But, that’s just the beginning. Once a startup secures necessary funding, the journey truly begins. It is time to set targets, adjust preemptive plans, and take the right steps. 

The actions a budding business takes after acquiring pre-seed funding or venture investments are of critical importance to its continual sustainability. A startup must be able to establish a steady revenue growth and proper market presence for it to receive further venture capital.

So, what comes next? What must a startup do to grow bigger & elevate itself further?

Actionable Steps to Take After initial funding

After a venture capitalist puts his trust in your ideas, the onus is upon you the entrepreneur to show that the trust isn’t misplaced. And, to do that, it is vital to utilize funds in operations that amplify growth & revenue. You need to deliver & showcase results; only then can you secure further rounds of funding

Time and money are immensely precious. Once you’ve acquired early-stage funding, executing the following steps will take you that much closer to the next stage of venture capital investments.

  1. Deliver

Show your investors proper results. 

Fulfill what you promised. Once your money is in the bank, think about how you will deliver on your promises. With the right resources in hand, it is time to adjust the plan and execute it.  

  2. Set Your Targets

Funds are here. It is time to move on to the next stage and execute further.  

For example, if a startup has secured seed funding & is aiming for better venture capital, it needs to strengthen its valuation by improving products/services & increasing revenue generation.  

  3. Re-Orient Your Team

When a fresh round of funding comes in, spirits will be high. Now is the time to motivate and prepare your team for the next set of objectives. 

Ask your marketing team to focus on acquiring new leads, tell your development teams to think up potential areas of product/service improvement, and so on.  

  4. Rejig Your Financial Model

Once a startup lands a substantial venture capital amount, old business financial models might go out of the window on the way to achieving the vision. To secure and make the best of the new capital, startups must update their balance sheets, budgets, forecasting, financial instruments, plans, and everything in between. 

  5. Plan for the Next Round of Funds

Development, up-gradation, and innovation are the need for the hour, once new funds land. Startup owners need to anticipate the future, evaluate everything, and determine the next steps towards growth & the next round of funding.  

  6. Set Benchmarks and Monitor Growth

You need to be able to measure your business’s performance. Your current and future investors will want to look at how their money’s being used to understand whether they have made a sound investment. 

Determine the most effective metrics that showcase company growth when measured. These are the aspects that you will have to mention in your investor updates.  

Keep in mind that acquiring necessary funding is just the beginning. Startups have to progress further on towards success & prosperity under the auspices of the right venture capital firm.  

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