Startup Stories: Power of Support Networks

Growing a startup is a challenging journey no doubt! What are the support networks, programmes and communities to help you navigate complexities of growing a business and raising funding?

We explored this topic with our startup community friends at the Plexal innovation centre to share stories from two founders, Accelerator Academy alumni Artificial Artists and Plexal member MOONHUB. Both founders have participated in two accelerator programmes in their growth journey, while MOONHUB has just accepted to immersive tech Augmentor programme’s latest cohort which Artificial Artist was also an alumni. Check out the event video replay.

Ben and Dami share their tips for tapping into different kinds of support available and how to make the best use of them, especially important for entrepreneurs in the current fast-changing complexities of 2020. Artificial Artists’ mission is to make 3D visual effects more accessible and affordable, empowering companies to generate their own 3D animation in-house, at speed and at scale, which their recent funding round led by Mercia’s EIS Fund will further enhance the product and growth. MOONHUB is a startup that uses cutting edge, remotely deployable VR technology to transform training.

Key support network benefits for the startup journey

Besides the opportunity to be part of a bigger community and access to networking which helps build a strong foundation for building your business, Ben and Dami highlighted key benefits they’ve gained through their experience with accelerators and being part of an innovation centre.

Gaining helpful perspective

Support networks can help you identify problems that you may not know you’ve had or help you realise that the issues you’re encountering are not uncommon and validate the challenges you’re having through shared experiences with peers. Similarly being immersed in networks can help alleviate feeling isolated in your early stage startup journey growing a small team, and help keep morale and momentum going. As well as getting perspective on how the industry is doing overall which is really valuable insight.

Learning the intricacies of raising investment

As fundraisinging is a key part of startup growth, accelerators can help tremendously in educating you on the process. From what to look for, to the level of detail learning about legalities and terminologies, which can be a lot to navigate for the first time venturing into this territory.  You need to really understand the process, which is complex and nuanced, and educate yourself on how it works.  Ben frankly points out how at the beginning, he didn’t know enough until Accelerator Academy taught him the ins and outs of raising investment.  

Different accelerator programmes can help with aspects from the rigour of preparing for raising funding to providing more industry specific support which can be helpful in tandem as evidenced by Artificial Artist’s recent investment success news.      

Valuable introductions

Introductions into the investment community via an accelerator is a really good bridge into investors for taking your first steps into that network.  While the first investors might not be the ones to invest in you, starting those conversations is crucial to build your experience and identify investors who are the right fit.  From Ben’s experience navigating this landscape, even if an investor doesn’t want to invest, they may identify someone who will.  

Tips for fellow founders

Building a strong network

Dami believes it is really important for startups to get outside of common comfort zone approach, such as A/B testing online sending out surveys, to really get to know people, get out in the ways that you can and have conversations to build a strong network as your foundation to get places, because you have those genuine good relationships.  

Reality of how long fundraising takes

Ben reiterates that the fundraising process really does take so much longer than you anticipate.  Even if you anticipate it's going to take longer than you think, add more time to it as the reality and that's something to be prepared for.  So start as early as you can in terms of support networks for that process.  

Juggling raising and running your business

Obviously, the fundraising journey is a roller coaster with moments where you feel like you're putting in a lot of effort for not a lot of return.   The moment you break through and feel like you're really getting some momentum is important, as once you can get those first successes, it becomes a lot easier to have the following conversations and encourage other investors to come on board.

Ben frankly talks about how he and his co-founder didn't necessarily expect just how much work would be involved in the fund raise. As a startup who may go through raising different rounds, you have to learn how to raise and run your business concurrently and not allow one to ultimately affect the other, which is no easy task.  

Investor mindset

From an investment standpoint, investors now obviously will be looking at whether your business or your product is Covid proof, so if you’re looking for investment now it is worth looking at your business through that lens.

Value of mentors

Additionally, align yourself or get introductions to people that have been through it before. Ben echoes the advice startups often hear about the value of a mentor who has been through what you’re going through, someone who has had a startup, sold their business or been through various rounds because that level of experience is invaluable in terms of helping founders understand the process you're going through.

Ben sums up that support has been massively important in the first periods of of his company’s development in giving crucial focus and direction, while you need to take what you learn, apply it and keep growing.

Our audience followed with Q&A to the founders about how lockdown has affected the process of running a business, communicating with clients, value proposition and business model pivots. Check out the replay for the full discussion.

If there are topics you would like to see discussed in our next Startup Stories, please do get in touch.