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Why it matters how a business is funded

Understanding how the client's business is funded helps you report on the right metrics

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Written by Strategy Organization
Updated over 2 years ago

Private Equity (PE)

  • Very Profit Focused

  • PE looks for profitable companies that they can take to new heights

  • Look for 15% - 30% YoY growth and NOT taking huge amounts of risk

Bootstrapped

  • Scrappy

  • Very Profit Focused

  • Typically watch spends very close and are sometimes scared money

  • Passionate about everything,

  • Agencies can be one of their biggest costs for the year

Venture Capitalist (VC)

  • Very Revenue Focused

  • Usually, the company investing in is not profitable but has HUGE upside

  • VC’s go for grand slam outcomes

  • Willing to take on riskier investments

See "Scaling for Profit vs Scaling for Revenue"

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