What does an investment mean?
For startups and scale-ups, investments can be helpful to accelerate growth, scalability and opportunities. The ability of startups to raise external capital is one of the most important factors in their success. An investment sounds easy, but it is actually more complex than it sounds. The process of getting an investment is long and requires a long term vision with a well-founded financial and strategic plan.
An investment is basically a relationship between startup and investor. Investments can be differentiated between dilutive and non-dilutive shares. Dilutive financing is any kind of investment where a startup gives up ownership of the company. Examples of dilutive funding are stocks, convertible loans and fundraising. Non-dilutive financing is a type of fundraising where you do not have to give up shares of your business. Non-dilutive financing are loans, grants or vouchers.
Why do you need an investment?
Funding for startups has multiple benefits. First, an investment is a validation of your startup from an investor. An investor sees different business plans every day, and if your startups stand out, you know you are on the right track. After you receive an investment, the extra capital offers opportunities e.g. hiring, gaining market share and new insights from the investors itself.
The kind of investor that fits you as a startup depends on multiple factors. Examples include the amount of the investment, information asymmetries, firm size, age of the firm, stage of the market and what you want from your investor besides the capital. The model below shows what investor suits which stage of growth.
Are you looking for an investment?
The first stage of the investment process is determining if you want an investment, or not. Only if you are fully convinced that an investment is what your startup needs, you need to continue the process. The orientation phase is critical. More information about the investment orientation can be found here.
Are you preparing for an investment?
Once you decide that you need and want an investment, you need to start with your plans. The most important part of this plan is your business plan with your pitch. These two documents contain for example financial strategies, market opportunities and technical roadmaps. Next to this, you need to determine the valuation of your startup. If you are preparing for an investment, this information could be helpfull.
Are you looking for actual investors?
While working on your business plan, pitch and valuation you need to start with networking. You need to start looking for the right investor among fellow entrepreneurs and experts. Once you are in contact with the right investor, the negotiation starts. More information about the network of investors in Groningen and the negotiation process can be found here.
Are you at the end of your deal?
When you are at the end of your deal, some standard procedures need to be taken place. Examples are due diligence and the actual deal making. More information about deal making can be found here.
What can Founded in Groningen do? Read our articles about capital or check out our capital partners for more information.
Founded in Groningen tries to make the investment process and network transparent. Next to this, we offer articles and information on our website and portal about capital and investments. If you have any questions, you can also email email@example.com
So when you’re looking for funding, what’s good to know? “Think big, kick ass!”
What does investment orientation mean?
The stage of investment orientation means that a startup is thinking about an investment. This is thus the first stage of the funding process because it determines the strategy of the startup. As a founder, you need to look into the future of your company. Where do you see your company in 10 years, and do you need funding to get there? From a capital perspective, you have two ways to move forward. First, you can bootstrap your startup. This means that you don’t receive external funding, and you do everything organically. The other way is by raising external capital and getting investors on board.
Where do you place your company right now on the Figure?
One thing that could help you in your orientation is to place your company on the figure below. This figure shows the relationship between the state of customer development/TRL and the type of investor that would suit you. The difference here can be made between fast to market startups and long to market startups. E.g., if you are in the validation phase of a slow to market startup, you can probably look at Family/Friends or at pre-seed investors.
Where do you place your company in the future?
To decide if you want an investment, you need to look into the future of your company. Receiving an investment sounds nice to have. However, it is important to understand why you need an investment for your startup. The following questions will help to answer this question: Does my startup need an investment?
- What is the Big Hairy Audacious Goal (BHAG) of my startup?
- Do I want to stay in full control of my company?
- Which roadblocks do you need to overcome to get towards your BHAG?
- What do you need to get towards your BHAG?
Who are partners of Founded in Groningen?
The investment orientation stage of something that you as a founder need to do all by yourself. You need to decide if an investment suits your vision, plan and execution. You can talk with friends, family, employees or partners. However, it still remains your choice. If you have any further questions, you can always email us at
Once you decide that you need an investment, you can start with your financing strategy. This financing strategy can be divided into a short and long-term strategy. Your short-term strategy is how you want to handle the round of investing you are working on right now. The type, amount and timing of the investment are determined here. Your long-term strategy is the number of rounds you need to reach your end goal. The funding of your future investments determines the choices you make today.
The first concrete product you need in your investment process is your business plan. Your business plan contains multiple aspects, and your content determines the stage of your startup. Our research shows that investors from Groningen look mostly at your team (and especially at you as an entrepreneur), the technology (right now, and in the future), the market you are in (right now, and in the future), and your financial plans (how do you make/planning to make money, what do you do with your financial resources right now and how are you planning to spend them in the future).
We're working on this part of the website. You will soon find information about validation here!
What can Founded in Groningen do?
It is helpful if you seek external help within the investment readiness stage. However, we as Founded in Groningen cannot offer this help. On the other hand, we can connect you with multiple partners who can help you. If you have any further questions, you can always email us at
Click here if you are interested in investment orientation, deal sourcing or deal making.
Who are partners of Founded in Groningen?
Venture Lab North
More info soon
More info soon.
Partners / Investors
NOM is your first port of call for everything you need to know, from legal and financial matters to exploring the possibilities within your market and finding the right workforce. Read more
Triade (founded by the UMCG) thinks along with knowledge-intensive / innovative ideas, in an early phase, with an entrepreneurial spirit, always together
Are you a scientist who works in the north of The Netherlands and want to start your own business? RUG Houdstermaatschappij BV will provide you with knowledge, experience and entrepreneurial support.
Carduso Capital wants to increase the value creation and transformation of knowledge into profitable technology companies.
G-Force is the driving force behind your company. We actively think along, help you refine your ideas and help with seed capital.
Boost-up Groningen offers the help of more than 50 experienced entrepreneurs.
Do you need money to successfully execute your innovative plans or growth ambitions? We can help you find investors, thanks to our experience and our extensive network of investment professionals.
Golden Egg Check is an online tool to assess the potential, feasibility and investor readiness of companies. We use the perspective of venture capital investors for this.
The RVO aims to facilitate entrepreneurship, improve collaborations, strengthen positions and help realize national and international ambitions with funding, networking, know-how and compliance with laws and regulations.
SNN grants subsidies for startup, scale-up, and SME innovation in Groningen, Friesland and Drenthe.
Shoot us an email and we will make sure you will be on this page!