Less than that, and they risk running into trouble when external shocks, such as the coronavirus, hit.įor more on the capital runway, read How long before I run out of cash? 2.
Part of that means taking advantage of diverse funding channels and opportunities, including bank financing as well as government funding programs, such as Innovation Norway, the Danish Growth Fund, Almi in Sweden and Finnvera in Finland.īusinesses should have a capital runway of around 18 to 24 months, says Lindtvedt. One of the main competencies and contributions of Nordea’s Startup & Growth team is helping businesses structure their capital strategy to ensure that they are attractive to investors at each stage of their lifecycle. Understanding investors’ criteria for investing is crucial to succeed,” he says. “It’s important to have a good strategy for your capital journey to be able to reach the milestones that make you attractive to investors in the different growth stages of your company. Do you have enough cash to reach the milestones necessary to attract new investors? That is the critical question, according to Håvard Lindtvedt, who heads the Norwegian arm of Nordea’s Startup & Growth unit.