If you are an ambitious, growing tech business who needs funding to grow faster, then you should be asking yourself these questions.
How do I protect capital growth whilst acquiring the funding necessary to grow?
What funding sources are available to my business?
What is the optimum blend of finance to suit my business, now and in the future?
How can I maximise my chances of being successful when applying for funding?
In a global market where product life cycles and new product development lead times are continually shrinking, companies must get smarter at innovation to survive and succeed.
This is a challenging, complex and time-consuming process for any tech company, who rarely have a shortage of ideas, just a shortage of management time, funding and resource and often a lack of knowledge of the various funding solutions that are available.
However, operating in a fast-moving, hi-growth sector, companies need to be able to access funding when they need it, at the lowest cost and with the minimum disruption to their day-to-day business activities.
Equity funding has a strong role to play in certain businesses at certain points in time and most businesses seek to achieve a mix of both debt and equity financing. A business that has secured equity will tend to be looked upon more favourably by lenders.
However, equity financing has its disadvantages, primarily the need for the founders to sacrifice some control and share of the business, reducing the potential for future capital growth. It also can be a very expensive and time-consuming process. Equity funds should be considered strategically when in a position of strength, to minimise the dilution of the business.
Non-dilution funding (i.e. funding without relinquishing shares) can be a realistic and achievable alternative to equity funding. Loans from lenders and banks add value without diluting equity, allowing you to fund the next step in your company’s growth path to success while maintaining your stake in the business.
The overall cost of loan repayments plus interest charges can be considerably lower than the potential cost of a stake in the business handed over to equity funders.
But – in order to access the optimum blend of funding – ‘WHEN YOU NEED IT’ – a company must plan ahead as most forms of funding take time to access. R&D grants, for example, can take 6-9 months from application to project start.
Investing the time necessary upfront to plan your 1-3 year growth strategy will help you identify the funding required to deliver this strategy and give you the time to plan the most effective and profitable means by which to acquire these resources.
How can the Infintec team help?
Having an external and objective input to this planning process can often make the difference between it not happening (or happening ‘half-heartedly’) and happening properly and making a real difference.
Even more importantly – Having a partner who will take support you through the entire funding process, rather than leaving you with a lengthy report and some recommendations that you won’t have time to pursue – that could be the difference between success and failure.
People like to deal with people who understand them and can talk their language.
At Infintec we have brought together a team of experienced professionals – each an expert in their field – who are passionate about technology and who have spent more years than they care to remember (in some cases!) successfully supporting tech businesses throughout the innovation life cycle.
We’re a sister company of MSC R&D – established in 1990 as an expert provider of support in obtaining R&D Tax Relief and R&D Grants for tech businesses.
We use our technical, commercial and financial expertise to connect you successfully to the right sources of growth funding.
What makes us unique?
We cover the entire funding landscape, and we make it happen.
We don’t signpost. We deliver – working as your partner to access the most appropriate funding and to implement the best commercialisation strategy.
We’re passionate about progress, technology and innovation.
Why not give us a call on 0114 553 5208 or email [email protected]