The differences between strategic funding and VC funding. It explores how these different funding types impact scaling production.
The differences between strategic funding and VC funding. It explores how these different funding types impact scaling production and supply chain growth, urging founders to choose the right partners.
I would uh fully say work with strategics but make sure that the their interest is your interest rather than the other way around when setting up the deal. >> And and this is interesting too because it's a different approach and a different way of um of dealing you know with perhaps more the financial players whether it's VC private equity versus a strategic like you were saying an H&M. So what are the main differences that you guys have experienced and what you can share with the people that are listening wondering whether it makes sense or not to bring a strategic to their um business. >> So in in my experience it's always going to be a mixture of both. The the strategic is going to have a higher level of scrutiny and focus on your technology and um performance of the product rather than your projections and um you know what you describe as a total addressable market
etc. They have a vision of how they would like this to work for them internally as a technology and they see how it could fit into their competitors as well which is why they're betting on you. Uh they just want to ensure that the qual that the product meets all the specs of something that they're looking for and that the vision and scalability of the technology match what they're looking for as well. there's a lot of really nice solutions that don't work at scale or price slashcost for the market that they're going into. And that's that's the key thing. The thing that the strategics are more focused on um than the you know revenue over the first 3 to 5 years versus VCs which are will be more focused on revenue projections than the strategics themselves. And I think us having both sides on every funding round, having participation from VCs and strategics first with uh H&M and in our
latest funding run with IKEA uh has brought that validation of you know checking the numbers, checking the product and making sure that uh there is alignment with what we're doing and what there's room to grow in in the industry.