A solid funding strategy is key to growing, scaling and sustaining your startup. It gives you the resources you need to bring your vision to life and create long-term impact.
This section is for you if …
- you’re launching an impact startup or already deep in the process with your team.
- you can clearly define your target group, the problem you’re solving, your solution and the impact you want to create.
- you’ve developed a validated prototype.
- you have some initial evidence of impact at the outcome level.
- you’ve identified a market for your solution and developed an initial business model.
- you’ve built and tested a minimum viable product (MVP).
- you can track the impact of your solution on both the output and outcome levels.
- you have a sense of how your solution could scale.
Not quite there yet?
Check out the section that fits your current stage
In this section, you’ll learn how to …
- create a solid funding plan.
- identify the right investors and funding opportunities.
- build a pitch deck that connects your impact with your business model.
This section is all about shaping your business model and bringing it to life — plus making sure the financial side of your solution adds up.
We We cover impact-driven issues in more detail here.
Find the right funding sources
From classic options like equity and impact investors to innovative models like revenue-based financing, there are plenty of ways to fund your startup. The key is finding the right mix that fits your needs. In this chapter, you’ll learn how to assess and combine funding options to build a strategy that’s flexible, stable and ready to scale.
1. Get a clear picture of your funding options
Start by thinking about which types of funding align with your business model and impact goals. Some of the most common options include:
- Equity investment
- Impact investors, business angels and specialized VC funds
- Foundations and philanthropists
- Incubators and accelerators
- Bank loans
- Government programs that support sustainable businesses
- Crowdfunding focused on social or environmental projects
2. Consider alternative financing models
Not every funding model fits every startup. Depending on your goals, alternatives like revenue-based financing, venture debt or peer-to-peer loans might give you more flexibility – without giving up control.
- Revenue-based financing: This model gives you capital in exchange for a percentage of your future revenue.
- Venture debt: A loan provided by specialized banks or debt funds to high-growth startups that already have venture capital backing. These lenders are willing to take on more risk than traditional banks.
- Peer-to-peer loans: Also known as P2P lending, this option connects borrowers directly with individual lenders – no banks involved.
3. Evaluate your options
To make the best choice, assess each funding option based on availability, cost, level of control and flexibility. In many cases, a hybrid financing is the way to go, as it combines equity, debt and grants with innovative tools like social impact bonds. This gives you a strong financial foundation for growth and long-term success.
Adapt your funding strategy
To guide your impact startup different stages of development, it’s important to align your funding strategy with your growth phases, key milestones and different future scenarios.
- Phase-based planning: Match your funding options to your startup’s current stage. Decide which type of financing makes the most sense at each point in your journey.
- Milestone-based planning: Tie your funding strategy to concrete milestones – like completing your MVP test or demonstrating your first measurable impact. That way, you stay focused on results.
- Scenario planning: Add flexibility by thinking ahead. Develop best-case, worst-case, and most likely scenarios so you’re ready to adapt when things don’t go exactly as planned.
Get investor-ready
1. Gather your key documents
Transparency is everything when preparing to meet with investors. Make sure your materials are complete and up to date. The essentials include:
- your business model
- all relevant financial metrics and
- your measurable impact KPIs.
2. Structure your pitch deck
A strong pitch shows potential investors what makes your startup stand out – and why it’s worth backing. Break your presentation into clear sections:
The problem
Your solution
Market potential
Business model
Team
Impact
Focus on the value you’re creating, and show how your startup combines social or environmental impact with financial sustainability. Use data to back up your case – and bring it to life with a compelling story that makes your vision tangible.
3. Practice, practice, practice
Try out different approaches, test your pitch with friends, colleagues or mentors, and refine it along the way. Practice delivering it out loud – confidence and timing are key to convincing investors.
Build your network and boost your visibility
Networking is just as important as a solid pitch. Go to events such as conferences, pitch nights and meetups. Join networks and communities for social entrepreneurs. Use platforms such as LinkedIn and startup directories to increase your visibility and connect with investors and partners. Keep your existing contacts – stay in touch and share regular updates with your supporters. Competitions and open callscan also help you secure funding and raise your profile in the field.
Next chapter: Test your strategy
You’ve developed your funding strategy and built a strong pitch for potential sponsors and investors.
In the next chapter, it’s you’ll put your strategy to the test – by pitching to real prospects and gathering valuable feedback.