Lessons for startups: Securing funding Maarten Ooms is Managing Director in Rabobank’s Financial Advisory and Solutions group, where he oversees their Food and Agri Innovation initiatives in the European region. As part of his responsibilities, he assists young growth companies to raise capital in private placement rounds. Entrepreneurs not only need vision and drive to commercialise their ideas, they also need to raise capital and to fully understand their market. Maarten Ooms, Managing Director, Rabobank Financial Advisory and Solutions Group
Critical challenges that need to be overcome “The main financial challenge is raising capital, especially in early rounds. The real challenge for startups is being able to convince potential investors about the fact that their business will give them the right return for the commensurate risk they are taking by investing into them. Another recurring issue for startups is that the only available financing is equity financing (raising capital by selling company stock to investors), which is both expensive and dilutive. Particularly for businesses that have a working capital need, that is not ideal.” “There are many non-financial challenges. The most important is to thoroughly understand your customers, their needs and the market, in order to get them to buy your product. Making sure that you understand your competitors’ landscape is also key. There are operating challenges as well, such as getting access to production, distribution and finding the right sourcing partners. And last but not least, building a strong team is key for success and can be challenging especially in early stages, when financial stability is still low.” Fundamental considerations prior to launching “Plan meticulously. Every little detail matters. For instance, it matters who your investors are, as they are not just providers of capital, but can give you so much more in terms of expertise, potential route to market and can also enhance your reputation.”
12 | More insights on Fi Global insights
