Product/Funding Fit
If you’re a startup founder, you’ve undoubtedly heard about Product/Market Fit
The idea that in order to be successful, a startup’s product has to “fit” or satisfy a strong market demand.
But here’s a new one for you:
Product/Funding Fit.
Did you know that startup financing options depend greatly on what your startup is building?
How you get access to cash depends on what you need to build. There are different investors and providers for nearly everything.
They have a different Product/Funding Fit:
Want to invent a new hardware? There are specific funding options for that.
Want to create a retail brand? There are a different types of funding for that.
Want to build a b2b SaaS company? You guessed it: An entirely different mix of funding options is appropriate for that.
I challenged myself LinkedIn this week to list all the funding type options I’ve encountered in my CFO career so far.
In 5 minutes, I had a list of 20. 🤯
But here’s the thing: Earlier in my career, I’d have probably come up with only 2:
Venture Capital
Bank Loans
And here’s why: Not many people have the opportunity to leverage 20 types. They vary by industry, business status, size, purpose, and a bunch of other factors.
So if your company needs cash
How do you figure out your perfect Product-Funding Fit?
Well you could just ask your friendly neighborhood CFO :)
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