When it comes to financing and support needs for growth, there are different paths to take. To find out about these, there are a number of actors to turn to with their questions. These range from a more traditional bank to networks of experienced advisors and entrepreneurs from the business community who give back their knowledge in an organised way in order to support less experienced actors in need of either capital, skills or extended networks. Another way forward is to grow organically and with one's own capital.
Depending on whether your company is in an early so-called idea phase grants may be available. These can be various types of development funds, often used to purchase external services.
If you are instead in a start-up phase loans or crowdfunding may be of interest. Loans are usually about making investments in tangible assets and the risk of your business idea will determine whether the loan is granted.
Crowdfunding is a form of investment where one or more people or organisations come together to back you and your business. Crowdfunding also comes in a variety of offers and arrangements. They can be loan-based, grant-based, reward-based or equity-based. The reward-based model is based on giving something back in return for any contribution, large or small. For example, this could be your own tree in the apple orchard from which the product originated, or a discounted pastry in the bakery that the crowdfunding made possible. Instead, equity crowdfunding relies on the investor becoming a shareholder in the company. By being an active shareholder, the investor can influence the outcome of their investment. This form is called equity crowdfunding.
If you are instead in a so-called growth phase or is facing a major transformation, such as a new innovation, it may need venture capital to boost growth. The capital is appropriate to protect companies with high growth potential. When capital is provided, it is often accompanied by skills. An investor may want to join your board, giving you access to their experience and knowledge, as well as their network. Investors are often referred to as angels or business angels.
The question you can ask yourself is where you and your company are in its development and what you might need. Don't forget that the corona pandemic and the transformation it has brought has meant that there have been subsidies in various forms from both the regions and the state. These range from redundancy payments from the Swedish Agency for Economic and Regional Growth (Tillväxtverket) to conversion grants that can be sought from regions to help them change their business models in response to new circumstances.
Do you know what support is available? Do you know which actors and networks offer knowledge and advice on issues related to financing models for growth? Here are some links to help you get started.
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