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The Founder's Guide: exploring financing options for start-ups

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The Founder's Guide: exploring financing options for start-ups

screen-shot-2022-09-15-at-14

Ionut Patrahau

· 3 min read
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editorials

The Founder's Guide: exploring financing options for start-ups

screen-shot-2022-09-15-at-14

Ionut Patrahau

· 3 min read

Written by Ionuț Pătrăhău, Managing Partner and Corporate Development @ SeedBlink. In addition to his extensive experience in banking, Ionuț Pătrăhău has also worked in the healthcare sector. He was the CEO of the private healthcare network Regina Maria and co-founder of the Brain Institute, a neurosurgery center developed in collaboration with Monza Hospital.

Starting a start-up with current friends and former colleagues might seem like a foolproof plan, as long as everyone brings diverse skills to the table or at least complements each other’s abilities. This is one approach.

Alternatively, you might choose to start a venture on your own, with just your spouse. In this scenario, prudence suggests bringing in additional expertise later by hiring diverse team members as needed. You could also implement an ESOP program to keep people motivated if things go well. This is another approach.

Which is the best choice? As always, the answer is: it depends. It depends on the type of business you're building. It depends on your transparency in relationships with others and how you fuel your business with the necessary capital. Each ownership solution can be both good and bad. Each comes with challenges, usually when there's no planning, and you’re unsure what you'll do in the coming years.

What kind of business do you want to build? Small or large?

Profitable or one that accumulates value? A business worth one million, ten million, or a billion?

What portion of the business do you want to keep for yourself? And for the initial founders?

What is your time horizon? Three years, five years, or ten years?

This is only the preface of the novel you are about to write, you and your start-up. How you finance your growth depends on this preface and a few other chapters. Bootstrapping, angel investors, crowd investing, micro-VC, or even VC. None of these are an exact science. Nothing can be precisely mapped out to ensure a smooth and trouble-free journey. There are so many variables in a business story, both internal and external, that it all becomes a game of risk and return, with a lot of common sense added in.

You might wonder then: what can I do? Is it better to move forward without any plan? Is it better to learn from my mistakes and face all possible challenges head-on? This is also an option. It is the option most founders choose, and yes, it educates them on the job. However, learning is one thing, and building a healthy business is another.

After five years of work, resulting in over 250 funded start-ups and several thousand more evaluated, we have assembled our experience and existing technology into a product we call Funding Sprint because SeedBlink is itself a financing ecosystem.

We are not an accelerator, a start-up studio, or an incubator. We are a financing platform where everyone can find the right capital solution. It depends solely on the founders to accept hard work, acknowledge their mistakes and shortcomings, amplify their strengths and qualities, and trust their partners. Because without trust, nothing solid can be built, neither in business nor in life.

Interested? Let’s talk.

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SeedBlink is the all-in-one equity and investment platform that provides the infrastructure, financial services and network coverage for European tech companies and their stakeholders to access, manage and trade equity at every stage of growth.  

With a comprehensive suite of products and services, SeedBlink streamlines investment processes and provides robust support throughout the equity lifecycle, from initial funding rounds through to mature investment opportunities and secondary markets. 

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