June 25, 2015

How To Land SaaS Startup Investment Funding

By Jennifer Klostermann

SaaS Startup Investment Funding

Currency Cloud, one of London’s FinTech startups, has recently raised $18 million in its latest funding round. With investors including Sapphire Ventures, Anthemis, Atlas Ventures, Notion Capital and Xange, total funding since 2012 has now reached $36 million. Processing $10 billion in payments per year with money transfer technology for businesses, Currency Cloud is a true startup success story.

Is There Funding For Me?

The upward trend of startup fundraising continued last year to more than $47 billion – a 62% increase on the previous year’s figures. Venture capitalists are putting more money into startups, but particular ideas and industries are favored. While popular consumer apps tend to receive a lot of attention, the investment in them is comparatively small. Industries with environmental conditions that promote success are emerging as valuable investment opportunities.

The Split

Funding is happening in larger chunks over fewer rounds. Uber, for example, raised more than a billion dollars in each of its two funding rounds, and Airbnb pulled in $475 million in one round of investment. But consumer tech isn’t stealing the entire capital pie. Venture capitalists are, predictably, focusing on obvious trends such as mobile technology – in 2014 $7.8 billion was raised for this sector. However, biotechnology and pharmaceutical companies are also attracting significant investments with new regulations reducing lawsuits against biotech firms and the ACA dramatically increasing demand in the healthcare sector.

Get Rich Quick

While a tiny percentage of startups have received global attention and massive funding, the failure rate is high. Well researched ideas that take advantage of the latest trends are important, but there’s a lot more you need to get right and a heap of luck helps too. Forbes offers startup investors some advice, including investing in known markets, checking up on founders, researching the use of funds and investigating financials. Startups looking for investment need to offer a strong, secure opportunity that boasts quality leadership, transparent systems, and superior products or services.

Entrepreneur takes this advice further and insists that you provide proof of potential success, establish trust and put together an experienced team that works well together. Your business plan needs to be impressive, and your product has to be unique, desirable and credible. Be sure to focus on the right investors and put together a strong marketing strategy that ensures investors you’re pulling out all the stops to grow a remarkable enterprise. And any investors who think you’re only in it for the money, won’t be handing their money over to you.

Going Public

In the end, many investors are looking for companies that will go public. This ensures millions can be raised from regular people, and also increases the value of the initial investments. The IPO process gives your company the Government stamp of approval, opening the doors to investment from the general public and giving early investors the chance to make high returns. Of course, the investment bankers also want you to IPO, getting 7% of all the money you raise.

By Jennifer Klostermann

Jennifer Klostermann

Jennifer Klostermann is an experienced writer with a Bachelor of Arts degree majoring in writing and performance arts. She has studied further in both the design and mechanical engineering fields, and worked in a variety of areas including market research, business and IT management, and engineering. An avid technophile, Jen is intrigued by all the latest innovations and trending advances, and is happiest immersed in technology.
Premkumar Balasubramanian

It Can Be The Year of Right Clouding – But Avoid Potential Pitfalls

Some people are calling 2023 The Year of Cloud Repatriation. I think this is a bit inflammatory. [...]
Read more
Nagaraj Kuppuswamy

Next-Generation Threats: Securing Multi-Cloud Environment

Next-Generation Threats Using cloud services from multiple cloud service providers is the fundamental tenet of [...]
Read more
Dolores

Q&A: Airport Security Trends with Dolores Alemán, Frost & Sullivan Analyst

Airport Security Trends In this CloudTweaks interview, we delve into the evolving landscape of airport [...]
Read more
Stacey Farrar

Copilot Is Here: What to know before migrating to Microsoft 365

Migrating to Microsoft 365 Microsoft is the latest company to unveil enhanced artificial intelligence (AI) [...]
Read more
Anastasios Arampatzis

Insider Threats: The Trojan Horses in Intellectual Property Theft

The Invisible Enemy In the rapidly evolving landscape of global business, intellectual property (IP) stands [...]
Read more
Dmytro Reshetchenko

Digital Solutions for Legal Matchmaking: The Role of AI in Connecting Clients with Lawyers

The Role of AI in Connecting Clients with Lawyers The legal industry is transforming significantly [...]
Read more

SPONSOR PARTNER

Explore top-tier education with exclusive savings on online courses from MIT, Oxford, and Harvard through our e-learning sponsor. Elevate your career with world-class knowledge. Start now!
© 2024 CloudTweaks. All rights reserved.