Preparing a startup for initial investment round. Case Scandium Holding Oy
Ketola, Mika (2021)
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2021112421440
https://urn.fi/URN:NBN:fi:amk-2021112421440
Tiivistelmä
A startup, that is developing its own product, typically has to seek outside funding to be able to produce the first commercial version of the product, as typically the company is not generating revenue yet. The lack of funding is one of the main reasons for startups to fail. During the development phase where there is no revenue yet and founders do not have the financial resources on their own, the company will need external funding, which is typically raised from investors through issuing new shares in the company.
The purpose of this functional thesis was to prepare a Finnish software startup to its initial funding round. The employer of this theses was Scandium Holding Oy. The assignment was to produce a pitch deck, that the company can use, as is, in its first funding round. The aim was to maximize the probability of a successful first investment round through the utilization of a clear, concise, and attractive investor presentation.
The development work for this thesis was to define the factors of a positive investment decision, assess the characteristics of a pitch deck used in successful funding rounds through benchmarking, and produce a pitch deck for the employer based on the gained knowledge. Additionally, a funding round strategy was formed during the preparation phase, as well as a light guide for other similar technology startups planning their first funding round.
The theoretical foundation for this thesis lies in the extensively available information online in the form of articles and guides, as well as information gathered in interviewing professionals that have been associated with the startup investing. The theoretical framework deals with the factors of a successful funding round from the perspective of the investor.
The research methods used in this thesis are thematic interviews and benchmarking. The goal for thematic interviews was to gain deeper understanding in the decision-making process of a startup investor. Benchmarking was used to build the structure and frame for a pitch deck that is aligned with the expectations of a professional investor while mirroring pitch deck’s produced and used by other startup companies that have been able to successfully raise funds.
The purpose of this functional thesis was to prepare a Finnish software startup to its initial funding round. The employer of this theses was Scandium Holding Oy. The assignment was to produce a pitch deck, that the company can use, as is, in its first funding round. The aim was to maximize the probability of a successful first investment round through the utilization of a clear, concise, and attractive investor presentation.
The development work for this thesis was to define the factors of a positive investment decision, assess the characteristics of a pitch deck used in successful funding rounds through benchmarking, and produce a pitch deck for the employer based on the gained knowledge. Additionally, a funding round strategy was formed during the preparation phase, as well as a light guide for other similar technology startups planning their first funding round.
The theoretical foundation for this thesis lies in the extensively available information online in the form of articles and guides, as well as information gathered in interviewing professionals that have been associated with the startup investing. The theoretical framework deals with the factors of a successful funding round from the perspective of the investor.
The research methods used in this thesis are thematic interviews and benchmarking. The goal for thematic interviews was to gain deeper understanding in the decision-making process of a startup investor. Benchmarking was used to build the structure and frame for a pitch deck that is aligned with the expectations of a professional investor while mirroring pitch deck’s produced and used by other startup companies that have been able to successfully raise funds.