Ask Christa! Business Basics Series (3/6) - What's The Best Funding Model For Startups? (S3E28) Ask Christa! podcast

Ask Christa! Business Basics Series (3/6) - What's the Best Funding Model for Startups? (S3E28)

18d ago 18:06

Content provided by Christa Dhimo, Dr.B.A, M.B.A., M.Sc.M, Christa Dhimo, and M.B.A.. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Christa Dhimo, Dr.B.A, M.B.A., M.Sc.M, Christa Dhimo, and M.B.A. or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

Summary

In this episode of Ask Christa!, Christa Dhimo discusses the various funding models available for startups, understanding which model aligns best with a founder's objectives and business goals. She reviews the misconceptions surrounding funding, the significance of ownership and leverage, and the complexity of products in determining funding needs. She also highlights the common misconception that venture capital is the only funding option and encourages entrepreneurs to explore a mix of funding sources tailored to their business and growth needs.

Key Takeaways

· The best funding model is one that enables building value for success.

· Funding options are more diverse than most founders realize.

· Understanding your business objectives is crucial for determining an appropriate funding model.

· Pace and timing are important considerations in funding.

· Ownership and leverage impact funding decisions.

· Size and complexity of a product influence funding needs.

· Funding needs evolve as the business grows.

· Mixing and matching funding sources is common among startups.

· Venture capital is not the only path for funding.

Additional Resources

Byers, A. (2024, August). Venture Capital Diversity – Women Founders | Feed | LinkedIn. https://www.linkedin.com/feed/update/urn:li:activity:7224045893371523074/

Bulatova, I. (2024, July 31). MailChimp Business Model & Revenue Model to Consider For Own Startup. You Are Launched. https://blog.urlaunched.com/mailchimp-business-model-revenue-model/

Cohen, R. (2020, January 1). The founder of Chewy.com on finding the financing to achieve scale. https://hbr.org/2020/01/the-founder-of-chewy-com-on-finding-the-financing-to-achieve-scale

O’Connor, C. (2012, June 5). How Spanx became a Billion-Dollar business without advertising. Forbes. https://www.forbes.com/sites/clareoconnor/2012/03/12/how-spanx-became-a-billion-dollar-business-without-advertising/

Staff, C. (2025, July 24). Free grants and programs for small business. CO- by US Chamber of Commerce. https://www.uschamber.com/co/run/business-financing/small-business-grants-and-programs

Startup financing. (n.d.). The Hartford. https://www.thehartford.com/business-insurance/strategy/startup/money

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Chapters

1. Introduction and Listener Question (00:00:00)

2. What is a “Funding Model”? (00:00:58)

3. What Questions Should I Ask? (00:03:56)

4. But What ARE the Funding Models? (00:13:37)

5. Additional Resources (00:15:15)

6. Final Thoughts (00:16:47)

7. Wrap Up & Submitting Your Questions (00:17:27)

34 episodes