The Power of Connection: Nurturing Strong Relationships with Funders

Startups often ask MVIP™ where to get funding for their ventures. Our answers are often based on the level of maturity at which startups find themselves (e.g., seed, early-stage, later-stage, mature), the industry in which it operates (e.g., CleanTech, BioTech, AgriTech, manufacturing, etc.), network/relationships (academia, business accelerator or incubator, other), and the particular purpose (e.g., research, international expansion/export, etc.).

In addition to our prior post and book chapter on funding and investing in IP, businesses must never forget the importance of nurturing strong relationships with funders at all stages of the funding lifecycle. This includes grants and tax incentive firms (SR&ED, IRAP, NSERC, etc.), funding agencies (Mitacs, Business Development Bank of Canada), University Innovation Funds, as well as other PE/VC firms that MVIP™ has developed good relationships with. Put our network to work, contact us. 

Why Relationships Matter

• Trust and Confidence: A strong relationship built on trust and mutual respect can make the difference between a successful funding round and a missed opportunity. Funders are more likely to invest in entrepreneurs they believe in, not just in their ideas.
  

• Open Communication: Honest and transparent communication is crucial for navigating challenges and maximizing opportunities. When you have a solid relationship with your funders, you can discuss concerns openly, seek guidance, and collaborate effectively.
  

• Long-Term Partnership: Funding is not just about the money; it's about finding partners who share your vision and are invested in your success. Strong relationships with funders can lead to ongoing support, valuable advice, and access to their networks.
  

• Referrals and Opportunities: Funders who trust and respect you are more likely to refer you to other potential investors or partners, opening doors to new opportunities and collaborations.

Building Strong Relationships

• Be Authentic: Show your passion for your business and your commitment to your vision. Be honest and transparent about your challenges and successes. Know your business plan and pathway to revenue. 
  

• Communicate Regularly: Keep your funders updated on your progress, both good and bad. Share your milestones, setbacks, and future plans.
  

• Seek Advice and Guidance: Don't be afraid to ask your funders for advice or mentorship. They have valuable experience and insights that can help you grow your business.
  

• Show Gratitude: Express your appreciation for their support and investment in your company. A simple thank-you note or a personal update can go a long way.

Remember, building strong relationships with funders takes time and effort. It's about investing in the people behind the money and creating a partnership that benefits everyone involved.

The takeaway:

In the ever-evolving landscape of fundraising, don't underestimate the power of human connection. Building strong relationships with your funders can be the key to unlocking your company's full potential. Work with us.