Financial advice from seasoned founders

When you're launching a tech startup, securing financing is crucial but challenging. The founders of several tech startups shared their advice, reflecting diverse experiences and strategies for success.

Koen Vervaeke, founder of Magcam, emphasizes efficiency in the early stages. He advises entrepreneurs to keep costs low while maximizing output, moving quickly toward a marketable product. "Selling a product is the best source of revenue," he notes. Raising external funds can diminish ownership, so Vervaeke stresses ensuring your business’s value is high before seeking investments. He recommends working towards having a functional prototype to negotiate a stronger position with investors.

Ellio founder Tomas Keppens highlights the importance of agility. "Pivoting quickly is essential," he says, explaining how financial forecasts can become irrelevant within months. For Keppens, cash flow is critical. He warns against overspending on small production runs, suggesting that postponing investments can make a significant difference in a startup's survival. "The cash situation is more important than the cost situation," he adds, reflecting on the hard-learned lesson of balancing careful spending with quality.

Vanessa Vankerckhoven, co-founder of Idevax, underscores the value of tapping into free resources early on. She suggests connecting with SO Kwadraat for initial support. Vanessa also stresses the importance of having a well-thought-out business plan that clearly outlines customer profiles and revenue strategies. "You have to know exactly who your customers are and how you will generate income," she explains, noting that a detailed plan impresses investors and shows them you're serious.

Leen Peeters, founder of Th!nk-E, offers practical advice on cash flow management. She emphasizes the need for a simple but effective financial structure in the beginning, advising against expensive tools and flashy services. "Excel works just fine for managing your finances in the early days," Peeters says. She also highlights the importance of timing when it comes to paying bills and chasing late payments, especially when working with large organizations that might delay. According to Peeters, mastering cash flow is essential to avoid unexpected financial stress.

For WeWatt founder Patricia Ceysens, the key is to start selling as soon as possible. "Paying customers, even for an MVP, are what drive the business forward," she says. While many entrepreneurs hope for significant funding to refine their product, Ceysens believes getting to market quickly and proving value through sales is the fastest path to growth.

Key takeaways

1. Efficient use of resources – Keep costs low and maximize output in the early stages, as Koen Vervaeke suggests. Delay raising external funds until your company’s value is high enough to avoid heavy dilution.

2. Pivot and adapt quickly – As Tomas Keppens advises, be prepared to change course fast. Financial plans can become outdated within months, so agility is crucial, and maintaining cash flow should be prioritized over costs.

3. Leverage free resources and plan thoroughly – Vanessa Vankerckhoven recommends taking advantage of available support platforms like iStart and SO Kwadraat. A detailed, thought-out business plan can help you secure investment and guide long-term decisions.

4. Master cash flow management – Leen Peeters stresses the importance of understanding your cash flow dynamics, keeping things simple with tools like Excel, and staying vigilant about spending and incoming payments.

5. Sell quickly and prove your value – As Patricia Ceysens points out, getting to market as fast as possible with paying customers, even if it’s an MVP, is essential. It proves your product’s viability and fuels growth.

   
   

The common thread in all this advice is clear: be resourceful, stay agile, and get to market quickly. Managing your cash flow wisely, minimizing unnecessary expenses, and proving your product’s value through real sales will increase your chances of success.

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