This chapter helps you align your solution, business model and funding strategy to lay the foundation for scaling your impact startup and preparing for the next growth phase.
This section is for you if …
- you’re planning to launch an impact startup or already working on one with your team.
- you can clearly define your target group, the problem you’re tackling, your solution and its impact.
- you’ve developed a validated prototype.
- you have initial proof of impact at the outcome level.
- you’ve identified a market and built an initial business model.
- you’ve developed and tested a minimum viable product (MVP).
- you’re able to track the impact of your solution at both output and outcome levels.
- you have a clear idea of how your solution can scale.
- you’ve developed and tested a funding strategy and a pitch deck.
Not quite there yet?
Check out the section that fits your current stage
In this section, you’ll learn how to …
- refine your MVP based on feedback and impact data.
- optimize your business model.
- finalize your funding strategy.
Analyze MVP test data and turn insights into action
Evaluating your MVP test data is key to making informed decisions about how to improve and grow your solution.
1. Organize your interview data and look for patterns
Start by bringing together all your notes, observations and recordings. Organize the data by grouping it according to test tasks or sections of your MVP. Pay close attention to repeated issues and common themes: What keeps coming up as a problem? What do users consistently praise? Spotting these patterns helps you zero in on what matters most and what should be improved first.
2. Analyze your data
Prioritize the most important insights by assessing how serious the issues are. Focus on problems that came up for several participants. Back up your findings with numbers – track how many people completed key tasks successfully or how long it took them to navigate different steps.
For open-ended feedback, look at what people said in context. Pull out recurring words, ideas or reactions that can guide your next steps.
2. Visualize your results
Make your findings easy to understand by using diagrams or heat maps to highlight pain points. Create a user flow diagram to map out the typical customer journey through your MVP . This makes it easier to see where people get stuck and where you can make meaningful improvements.
What is a customer journey?
The idea of a customer journey comes from the software sector, but it works just as well for non-digital innovations. You can easily adapt the core principles to your own solution. For example:
- Instead of talking about users, refer to participants or target groups.
- Rather than tracking clicks or conversions, look at real-life interactions.
Validate your funding strategy: win over investors
Your funding strategy isn’t a one-time thing. It needs to evolve, as it is shaped by investor feedback and backed by data.
1. Review and analyze investor feedback
Organizing the feedback you’ve received from potential investors is important. Grouptheir comments by topic – growth forecasts, risk factors, valuation, and so on. Look for patterns and recurring concerns across different conversations. Compare the feedback from different investors to identify the most common points of criticism and prioritize changes based on what matters most to investors.
2. Learn from your cash flow and key metrics
Dig into your cash flow to see whether your financial strategy is actually working. Compare your operating cash flow and metrics like EBIT or EBITDA with your own forecasts and industry averages. If something’s off, figure out why – and use those insights to improve. Also take a closer look at how your funding strategy affects your liquidity and long-term growth.
3. Adapt your strategy as you go
Based on what you’ve learned, update your financial goals and projections. Refine your forecasts to make them more realistic. Build out a few “what-if” scenarios to prepare for different market conditions. Consider whether you need to tap into other funding sources.
4. Monitor your progress consistently
Set up a system to track your key financial numbers on a regular basis. Define clear thresholds that flag when something needs your attention. Run routine check-ins to review your numbers and adjust your funding strategy if needed.
When you combine these tools with regular feedback and real-world testing, you’ll be able to strengthen your MVP, sharpen your financial plan, and refine your business model – setting the stage for sustainable growth and real impact.
Next chapter: The growth phase
By now, you’ve ideally validated your MVP, confirmed your startup’s impact and market potential, and built a solid funding model. You’ve also made sure the resources you need are in place. That means …
- You’ve tested your MVP with early users and received positive feedback.
- You’ve set clear impact indicators and can measure your outcomes.
- You’ve seen real signs that a market exists – and that your solution can scale.
- You have a funding strategy in place and initial interest from investors or pilot customers.
- You’ve secured (or are actively building) the team, funding and infrastructure needed to grow.
If all that sounds familiar, you’re ready to move into the growth phase with the help provided in the next chapter.
If not, no problem! Just head back to the chapter “Develop your MVP: Test your solution under real-world conditions.”
Stuck? These tips might help:
Tips for successfully validating your MVP, impact and funding strategy
MVP validation
- Do your homework before building your MVP. Deep market research is key to understanding your target audience and the competitive landscape.
- Focus on the core features. Don’t overload your MVP with too many bells and whistles.
- Set clear goals: What do you want to achieve, and how will you measure success?
- Actively collect feedback from participants – and stay open to change.
- Strike the right balance between “minimum” and “viable.” Your MVP should be functional and engaging enough to generate meaningful feedback.
Impact validation at the output and outcome level
- Define clear, measurable indicators for both output and outcome.
- Build in methods to track those indicators from day one.
- Don’t just focus on short-term outputs. Make room for medium- and long-term outcomes too.
- Be ready to revise your impact logic as real-world data comes in.
Funding strategy validation
- Don’t overestimate how quickly you’ll generate revenue.
- Explore different funding sources and models.
- Make sure your funding strategy aligns with your business model and growth strategy .
- Keep your valuation and funding rounds grounded in reality.
- Get ready for detailed due diligence processes.