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Thinking about funding for your business? Perhaps you need help developing your tech product? Or maybe you're looking to scale up? There are many funding options for businesses, and you don't need to be an investment expert, well-connected or even a seasoned entrepreneur to access them. What you do need is a good understanding of these options and the process. That's why Breakthrough Labs have developed the ultimate guide for female founders exploring investment options. With contributions from a panel of experts, our 22-page guide covers various approaches, from bootstrapping to venture capital investment, all the pros and cons and top tips for success. And - it's completely free! Because our mission is to break down barriers and help female founders succeed. Not sure if you need to raise funds for your business? Then this guide's for you too, as part one delves into identifying whether investment is even necessary. Download your FREE guide today ! Access our expert funding guide for female founders in tech

Developing an innovative product is a great achievement, particularly when it addresses a clear gap in the market. However, many promising ideas fail to progress beyond the concept stage. Limited funding, technical constraints, and uncertainty about market fit are just a few of the challenges that stand in the way. Once a prototype or minimum viable product (MVP) is in place, the next critical step is testing it with real users. Product testing helps uncover usability issues, identify feature gaps, and assess whether the product actually delivers value in practice. For startups and early-stage founders operating with limited budgets, traditional methods of product validation may be out of reach. Yet there are still practical ways to gather meaningful feedback and reduce risk. This article explores how to test products on a shoestring budget, with a focus on strategies that maximise insight while minimising cost. Why is it important to product test? Product testing doesn’t simply let you know whether your product has traction; it provides feedback that can help you shape your business and respond to public or business needs more effectively. In short, it gives you critical guidance on how to develop user experience and fix issues. It’s an opportunity to be responsive and increase your chances for success. The drawback? It can be disheartening if you don’t enter the process with the right outlook, and it can be expensive. The good news is that it is possible to proceed to product testing on a shoestring budget, and this guide is going to walk you through the various ways to do so. What does product testing involve? Generally speaking, product testing seeks to assess performance, quality and functionality from those who might be end-users. You’ll be hoping for feedback to help you refine the offering, meet customer expectations, compete in the marketplace and provide quality and value. Through this process, you should be able to assess strengths and weaknesses with a view to refining and adapting your product to meet the needs of those it is designed to appeal to. There are various ways to go about this. You might hire a UX researcher or product manager to run structured testing or use digital platforms to run testing directly. Well-funded startups might opt to use an agency to take their product to a test audience. This is a great way of placing a middle management team between you and the potential end-user to highlight the key feedback and assess their experience, often with the added bonus of the agency applying their expertise to suggest improvements, based on their consumer research. However, not every early-stage founder is able to fund such an endeavour or hire a specialist. But, rather than abandoning this crucial stage, we suggest managing the testing process yourself. Here are five ways to product test on a shoestring budget - Friends and Family Feedback Often the first port of call for early-stage founders, friends and family are usually willing participants and will take the time to test your product and report back. However, your personal relationship could lead to bias and make them less likely to report flaws or even identify errors. In some cases, they may also not represent your target audience. So, whilst asking loved ones for their help is always worth doing, you may not solely want to rely on them for product testing.  Social Media Feedback Head to social media to get candid feedback from your target demographic or industry peers. Share your product (or demo) on platforms like Reddit, LinkedIn, or Instagram to get candid feedback from your target demographic or industry peers. Social media users may be inclined to test your product and provide feedback in exchange for early access, especially if your product offers a learning opportunity or solves a problem. Top Tip - Remember, social media is supposed to be a social platform, so avoid being too formal. Keep your testing request conversational and concise, highlighting to your audience why their input matters, as well as any ways early access might benefit them. Fellow Founder Support Many wise early-stage founders join networks and communities, such as Breakthrough Labs, to be among fellow founders, learning together and supporting each other. If you’re part of a community like ours, then it’s well worth asking other members if they’ll try out your product and provide some feedback, either directly or through a questionnaire. You could use basic tools like Google Forms or Typeform to collect responses. Like friends and family, they’ll want to support you, but they’ll also likely understand the importance of honest feedback for the benefit of your business. Business Shows and Exhibitions A great way to get feedback from potential end-users in a specific industry is to showcase your product at an exhibition or business event. Even if you’re pre-launch you could hire a stand and set up a testing booth. There are many benefits of this, including high footfall and in-person interactions that can help you get more in-depth feedback. Usability Testing Platforms Usability testing platforms let you observe how users interact with your product or prototype through screen recordings, click tracking, and feedback. You can run tests with your own users (often free) or pay to access participant panels. Popular tools include Maze, Lookback, Useberry, and PlaybookUX, many of which offer free or low-cost plans for early-stage teams. You create a test with tasks, recruit users and receive recorded sessions or analytics showing how users navigate your product. Pros: Structured, insightful feedback Remote and scalable Visual data (e.g. screen recordings, heatmaps) Cons: Free plans are limited in sessions or features Unmoderated tests lack real-time interaction Test panels may not match your real audience These platforms tend to skew towards tech-savvy users. This can mean more thorough testing, but users may also be more digitally advanced than your target audience. Usability testing platforms also take time investment and a focused approach to craft useful, clear tasks and questions designed to generate constructive results and analytics. Final Thoughts The success of product testing often comes down to how well you engage people and what you do with their input. Key to getting people to participate is making it simple. Lower the barrier to entry by using methods such as polls, short surveys, rating scales, or focused questionnaires (via tools like Google Forms or Typeform). Be clear and specific in your questions, as broad requests can be off-putting. It’s also essential to show appreciation and nurture relationships during this process. Testers may become early adopters and can go on to support you and help you grow a following, generating pre-launch interest in your product. Prepare yourself because feedback can be overwhelming. Post-testing it can seem there is much to fix and improve but remember, this is the purpose of product testing. Focus on recurring issues and insights and prioritise changes based on the resulting impact. Finally, it’s crucial to treat testing as an ongoing endeavour, especially with tech products. Every round of feedback helps move your product closer to what your users actually need and reduces risk before launch.

Two-time invitee to Downing Street and named Britain’s Top Real Role Model in 2014, Louise Webster has been recognised as “a true change maker” by Global Invest Her . Louise joined Breakthrough Labs for the connections and to be amongst other ambitious women. Much like Breakthrough Labs, Louise has made it her mission to elevate driven women, unlocking the natural talents of mothers and creating a new way of working through her organisation, Beyondtheschoolrun . Beyondtheschoolrun is the award-winning platform connecting mothers to information, inspiration, and opportunities to empower them to grow personally and professionally. Named one of the Top 58 British Tech Startups for 2014 by UK Business Insider, the platform was inspired by Louise having both seen and experienced the barriers women face in returning to the workplace after having children. And in her spare time? Well, she’s just serving as a United Nations UK delegate committed to driving meaningful change on a global scale! Oh, and she’s also the author of A New Way For Mothers . We are overjoyed to have Louise join our community, where she’s sure to be an inspiration to us all. We look forward to supporting her too as she grows Beyondtheschoolrun and builds their B2B offering - the first integrated platform to create gender equality in the workplace.

So, you’ve decided now is the time; you’re ready to get serious about launching or scaling up your tech business. You are looking to join a tribe of women who will be building their businesses alongside you. But perhaps you’re wondering if this is the right time. Maybe it would help to understand just what happens after you sign up for a membership plan. The Member Hub Did you know there’s a secret part of our website? After signing up, you’ll receive an email with instructions on how to log into the Members Hub and create a profile. It’s all very straightforward and a great chance to introduce yourself and your business to the community. You’ll also be able to read the profiles of other Breakthrough Labs members and begin to make connections. Resources Once you’ve set up a profile in the Member Hub, you’ll probably want to explore our Learning library. Here you will find tons of guides, articles, webinar recordings, worksheets and masterclasses. So, when you join Breakthrough Labs, you’re not just accessing future events, you’ll be exposed to our entire back catalogue too. There is much to explore here - some great written pieces as well as video recordings of former workshops with a range of experts. We recommend taking your time to avoid overwhelm; have a browse and put some time aside to explore a little more of our Learning library each week. In addition, you’ll be able to explore our comprehensive list of Trusted Suppliers. These are service providers who provide quality services that founders need, and many of whom offer special discounts to Breakthrough Labs members.  Register for Events We are an active group, keen to learn, meet experts and develop skills together, so our online events are a huge attraction. The good news is that after signing up for membership, you’ll be able to register for events with your new login information. All of our monthly events are included in your membership - Masterclasses, Meet the Investor sessions, She Built This sessions (talks and Q&As with successful female entrepreneurs), Coaching Conversations with our Coach-in-Residence Janine Matho, Friday Coffee Breaks with fellow members, and more. New Member Welcome The first online session you’ll want to attend is our New Member Welcome, because this is for you! You’ll meet Breakthrough Labs founder, Dr Kristen Weatherby, who will take you on a virtual tour of our platform and resources and take some time to get to know you and your business, and give you some great advice on how to get the most out of your membership. On-Going Communication Of course, we don’t expect you to be logged into our Members Hub all the time - we’ll help keep you informed of events, learning resources, news, offers from trusted suppliers and investment news from our investor community, through our weekly community update. If you’re not following us on social media already, you may want to do so. Here we share ideas and continue discussions with members, non-members, partners and other supporters of Breakthrough Labs and our female founders.Breakthrough Labs on LinkedIn Breakthrough Labs on Instagram Concierge Membership If you have signed up for Concierge Membership, you will gain all of the above. However, you’ll also have access to our Directory of Advisors. Furthermore, we’ll set up a 1:1 with Breakthrough Labs founder, Dr Kristen Weatherby, to discuss your needs and challenges. During this call, Kristen will be able to learn more about you and your business, enabling her to match you with the business leader advisors who can best help you accelerate. When Should I Sign Up For Breakthrough Labs? Look, with very few exceptions, anything you can do to move your business forward should be done now. Because, in many ways, we’re never ready, and there are always so many reasons to wait. But waiting to join a start-up community like ours is a bit like wanting to be in better shape before you join the gym, or cleaning the house before the cleaner comes (because you don't want them to think you’re messy). Don’t worry if you’re not where you want to be in your business journey - that’s what we’re here for. Don’t be concerned if you don’t have a lot of time to commit - we’ll help you find time and make it count. Don’t be surprised if you still don’t ‘feel’ like a founder - we’re here to build belief as well as businesses. Community is so important, particularly for female founders. So, whether it’s Breakthrough Labs or another start-up community, we urge you to find a network that can support you in the right way. If you’re looking to make connections with fellow female founders, develop business skills - including securing investment, and benefit from some coaching, and share both your struggles and successes with those on a similar journey, then congratulations - you might have found your tribe at Breakthrough Labs. Sign up  today.

This June, we’re thrilled to welcome Kate McAlpine of ConnectGo as our Featured Member. Kate is someone who’s never been afraid to challenge the status quo. Growing up determined to push beyond gender-based expectations, she has spent her life championing people, ideas, and systems that make real, lasting impact. Over the past 30 years, Kate’s career has taken her across East Africa and the UK, working in violence prevention, youth empowerment, and social impact measurement. “I know firsthand what it means to feel unheard—and that’s why I’ve dedicated my life to ensuring that young people, communities, and overlooked voices have a seat at the table.” Now, through ConnectGo, Kate is leading the development of Value Scope - a human-centred data intelligence platform that’s redefining how we measure social impact. As Kate puts it: “When we can’t measure what matters, the people who matter get left behind.” Value Scope helps funders, governments, and ESG investors make decisions based on real, meaningful outcomes, not just check-box data. It’s about turning social value into an asset and ensuring that impact isn’t just reported—it’s lived.“I bridge knowledge and action to enable people to thrive, combining strategic insight, deep listening, and unwavering commitment to turn complex challenges into meaningful change.” We’re so excited to have Kate in the Breakthrough Labs community and can’t wait to see how her work continues to break down barriers.

So, you’re considering seeking investment for your start-up. Maybe you want to get a great idea off the ground and are unable to fund it yourself, or maybe you’re ready to grow - to market your business or develop your product and you need investment to do so. Generally speaking, most tech-based companies benefit from funding to accelerate their business and get their product to market. However, there are some downsides to consider and raising funds can be complicated. In our final ‘Fund Her Future’ webinar for Breakthrough Labs  members, we spoke with equity investors, legal experts, and founders to explore what female founders need to know before starting their equity fundraising journey and in this article we’ll share some of their key advice.We’ll explore - How to know when you’re really ready to raise funding for your start-up What to consider when seeking investment How to put together a plan for raising capital for your start-up 1. Raising Capital Isn’t for Every Business — And That’s Okay Funding is not necessary for every business. Some are able to and may even benefit from growing organically. Remember that investment is both a privilege and a burden. You will likely be under pressure to produce a return on investment, or you may be giving away equity which means allowing others to have influence on your business. Whilst there are many reasons to procure funding for a start-up, it’s not a must-have for everyone. So , before you start putting together about decks, valuations or VC lists, pause and ask yourself these questions: Does my business actually require outside investment to grow? Am I ready to scale at the pace investors expect? Can I accept giving up some control? As Vanesa from NoBa Capital  shared, “VCs aren’t just writing a check. They’re becoming long-term partners in your business — so be clear on why you want that.” 2. Venture Capital Funding Requires Hypergrowth In order to secure venture capital funding you must not only be able to logistically scale up at a significant rate - there are other factors to consider. Aside from finance, building a business takes a huge amount of time investment and whilst growing any business always requires hard work and determination, the added pressure of having secured venture capital funding can be too much. It’s also a model that does not so easily enable you time to pause, review, correct mistakes and scale up at a rate that suits you (and your team). Burn-out is a risk factor and it’s also important to be absolutely sure of the direction you want your business to go in, if you are looking to secure financial backing for that. In our start-up funding webinar, Louise from HearstLab  emphasised that venture funding only makes sense if you're aiming for significant scale and have considered the consequences of that.“VCs operate on a 7–10 year return cycle. If your model doesn’t support hypergrowth, VC might not be a fit.” Ultimately, venture capital funding means being willing to sacrifice short-term flexibility for long-term scale. So, review your business model and be honest about the undertaking for you, personally, before seeking investment. 3. Think About the Trade-offs When Seeking Investment You’re not “giving away” equity — you’re entering a high-accountability partnership. That partnership often involves: Board seats Investor oversight Strategic alignment and expectations You’ll likely have launched your start-up as an innovator and/or creative. Yet, when you’re seeking investment, you will need to adapt and reprioritise. As lawyer Malin Svanberg Larsen stressed, “Once you raise, you’ll be running two jobs — founder and fundraiser.” Do your research and learn how to seek out and manage investors properly. This is a role that’s difficult to learn as you go, so consider attending learning events , such as those hosted by Breakthrough Labs , where you’ll meet and gather insights from investors and investment experts. 4. Prepare to raise funding If venture capital investment is the right route for you then the next step is to plan. Fundraising takes time. It is often a 6-12 month process and it’s important to prepare for that. The next stage often includes dozens (or hundreds) of pitches. Louise from HearstLab  advises founders to first break potential investors into tiers: Tier 1: Dream partners Tier 2: Good fit, not sure yet Tier 3: May not be aligned, but worth exploring She advises starting with Tier 3 to practice your pitch, then move up. This is a priceless piece of wisdom because there is a learning curve in seeking investment and it’s a common mistake to practice your pitch on your dream clients. Accept that you will get better over time and build up to pitching to the clients you really want to wow. 5. Be Clear on What You Want Essentially, investment is about securing finance to help your business grow, but in reality it’s so much more than that. You should also be clear on what support you need beyond financial investment. For instance, would you benefit from -  Strategic input? Operational experience? Access to networks? Most importantly - do your diligence on the investor. Some mistakes are inevitable when building a business but there are those that are detrimental - bad investment can be one of those so proceed with care. Don’t rush into an offer without doing your own research and scrutinising contracts. Balance business passion with caution and take time to ensure the right decisions are being made. “The wrong investor can hurt your business more than no investor at all.” – Malin Svanberg Larsen, Lawyer.

In our final installment catching you up on our ‘Fund Her Future’ webinar series, we’re focusing on what the next steps are for female founders who’ve decided raising equity investment is the right path for them. We spoke with  angel investors, venture capitalists and legal experts  to produce this guide for female founders raising equity investment. Here is some valuable advice on what to do and what to avoid when preparing to approach investors for your start-up. Know Your Numbers Before you seek out potential investors, you must be sure of your numbers. Accurate financials are a key factor in building investor trust and credibility. Investors want to see a clear, data-backed understanding of the business’s current performance, revenue streams, costs, margins, and projections.  If you’ve ever seen an episode of Dragon’s Den you’ll know what happens when a founder can't confidently recall or speak about their figures - it’s not pleasant. Moreover, if you can't clearly explain your financials, it raises red flags about how well you understand and manage your business. Ensure your numbers are thorough and accurate by: Keeping your bookkeeping clean and up to date Working with an accountant or financial advisor to validate your figures Tracking key metrics like cash flow, burn rate, CAC, and LTV Building a detailed, realistic financial model with clear assumptions Stress testing your model to prepare for best-case, worst-case, and most-likely scenarios It’s also a good idea to practice explaining your numbers so you’re ready to confidently walk investors through your financials and assumptions. Members of Breakthrough Labs are able to attend and take part in pitch practice sessions as part of their membership. It’s also a great time to join us as we’ll be offering a masterclass in financial storytelling in October for our members - given by an investor. Find out more   about membership. Know Your Narrative A compelling pitch needs a strong narrative. Investors will want facts, figures and forecasts but they’ll also want or know your story.  You can achieve this with: A pitch deck that clearly tells your story - covering the problem your tech product or solution hopes to solve, the journey so far and your vision for growth. Keep it concise and visually engaging. A clear explanation of why you're raising funds - what the capital will be used for, how it will move the business forward, and what milestones you expect to hit. Your motivation and skills - tell investors why they should believe in you to spearhead this venture. Tell them about your unique skills and insight into the market. As Louise from  HearstLab  told us, “Investors want to back the right business- and the right founder”. Build Your Data Room Early On “Don’t wait until you’re raising — build your data room as you go.” - Vanesa from from  NoBa Capital   A data room is a secure, organised repository of documents that investors will want to review during due diligence. Having it ready early shows professionalism and saves time during the fundraising process. It also prevents scrambling to pull together critical documents at the last minute, which can slow down or even derail a deal. Contents of your data room might vary slightly depending on the investor but, at a minimum, it should include: Financials: P&L, pipeline, forecasts Legal docs: Incorporation, employment contracts Cap table and share structure IP documentation Employee CVs Know Who You’re Pitching To Avoid the rookie mistake of sending a generic deck to every investor. Investors each have specific focus areas which may include stage, sector, geography, and size. They don’t want to waste time on pitches that aren’t a fit. Reaching out blindly shows a lack of research and can hurt your credibility. Remember, it’s a small world! Neglecting to tailor your approach for each investor can also mean missing out on opportunities. Hearst Labs, for example, only invest in female founders and yet, “I still get pitch-decks from male-led teams every week,” Louise told us. It ’s important to do your research on each investor and ensure you: Understand their thesis Know what stage they invest at Personalise your approach (especially for your top priority investors) Find The Right Fit - and Don’t Settle Welcoming an investor onboard is a big deal. Your business is important to you and the people you work with as you build and grow will be instrumental. So it’s essential to find the right investor and ensure you’re happy with the terms. “Desperation leads to bad deals. Step back and explore alternatives.” – Vanesa Your investor should be a long-term partner, so make sure you’re confident that they’ve: Backed businesses like yours Your values align They’ll support you when things get tough Understand the Terms Taking time to understand and - if necessary - negotiate your term sheet, is one of the most important steps in raising funds. Don’t sign anything you don’t fully understand. It’s crucial to get expert legal and financial advice to make sure the terms work for you now and in the long run. A rushed or poorly negotiated term sheet can lead to regrets down the line, especially around control and ownership. Pay close attention to: Valuation – It affects how much of your company you’re giving away. Dilution – Understand how your ownership changes now and in future rounds. Control clauses – Look out for investor rights, veto powers, and protective provisions. Board rights – Who gets a seat at the table, and what decisions require their input? SEIS/EIS advance assurance – Make sure you have this in place to make your round more attractive to UK investors. “The term sheet is your prenup. You’ll live with it long after the cheque clears.” – Malin, Freeths LLP Your term sheet isn’t just paperwork. It sets the tone for your entire relationship with investors, so take it seriously.

Start-up founders often require investment to become established and grow, but not all founders are comfortable with giving away equity, especially in the early stages. Sharing ownership can be challenging and early-stage founders don’t want to give up their vision in favour of scale. Therefore, securing non-dilutive funding can be the best option.If you're an early-stage founder exploring loans, grants, or other non-dilutive funding options, here's our top advice -- plus key pitfalls to avoid, with insights from investment experts. What to consider when seeking non-dilutive investment When considering start-up funding, it’s important to understand the full risk. Taking on debt is a commitment, and you need to be able to answer the following questions with confidence: Personal guarantees — do you need to sign one? Loan insurances — can you protect yourself if things go wrong? Funding duration — will your business generate a return within that time? Understand that grants are not “Free Cash”. They require: A viable business and project Often fronting your own cash before getting reimbursed Rigorous reporting, time investment, and risk assessments Nicola from Innovate UK Business Growth emphasises that, even with a grant, “They’re still assessing your project as an investment. Your credibility and the project’s realism matter.” Make sure you’re not relying on debt to cover gaps in planning. Debt and grants should help you grow, not patch over business model flaws. If you’re not sure whether the numbers make sense, get a second opinion before applying. And remember: “Debt funders want a repayment plan. Equity investors want your vision. They are two different languages — don’t mix them up.” Lastly, be sure you’ve explored alternative options. If you’ve already used a Start Up Loan, for example, you might be eligible for a top-up or even a second loan after a year of trading. Government-backed loans come with: Fixed 6% interest No setup or early repayment fees Terms up to 5 years It’s also worth knowing that multiple co-founders can each apply individually, making it a powerful option for early growth. Applying for non-dilutive investment When seeking any investment, getting your books in order is essential.Before applying for anything, make sure you have: A detailed business plan A 12-month cash flow forecast Personal and business bank statements that show good money habits Quotes or documentation for big expenses you’re funding Tools like the  British Business Bank’s Start Up Loan templates  can make this process simpler. They’re specifically designed to guide you through forecasting sales and breaking down your costs, even if finance is not your strong point. It’s important to be realistic in your forecasting. Most founders overestimate revenue and underestimate costs. Lenders and grant providers know this. Lisa from Let’s Do Business Finance  advises “sensitising” your forecast:“Knock 20% off your sales figures. Leave all the costs the same. Can your business still survive? If not - rethink your numbers.”This demonstrates a realistic outlook that safeguards against slower-than-expected growth and is often a green light for potential investors. Crucially, don’t be tempted to hide financial issues. If things are tight, be honest. As Lisa points out, “We’re not transactional. We’re storyteller lenders. If there’s a challenge, we want to know upfront so we can help.” Assessing a non-dilutive funding offer  It may sound obvious, but going through the fine print of any funding offer with a fine-tooth comb is essential. If possible, consult a solicitor or seek the advice of someone experienced in contracts. Securing non-dilutive funding can be challenging, and you may be tempted to accept a first offer or the fastest loan to access with the least paperwork required, especially if you’re strapped for time or cash. Many high-cost lenders will advertise headline rates like “4% interest,” but, as Sharon from Choice Business Loans  warns, “That’s 4% per month, not per year - and it adds up quickly.”Scrutinise any offer and ensure you know - The total repayable amount If there are setup or early repayment fees How the interest is calculated (flat, APR, per month, etc) Non-dilutive finance is a brilliant path when explored with proper care and consideration. Preparation is key, and it’s important to have clarity in what you're asking for and why. Don’t be afraid to seek advice and make the most of available resources, such as your local growth hub, Innovate UK Business Growth  team, or British Business Bank . Lastly, don’t rush. As Sharon from Choice Business Loans  advises, "Take a breath. Make a cup of tea. Read everything before you sign anything."

This blog is based on insights from the second webinar in the Fund Her Future series, supported by the British Business Bank. We spoke with grant providers, loan specialists, and non-dilutive finance brokers to gather the best advice on how early-stage female founders can access funding — while keeping full ownership of their business. As a female founder of a tech start-up, choosing the right kind of funding to grow your business is a critical decision. If you're not ready to give up equity, there are several non-dilutive finance options that can support your ambitions — but they come with their own set of considerations. Here's what you need to know before diving in.   Understand What You Really Need Before you even think about loans or grants, ask yourself: Do I need cash to purchase equipment or inventory? Is it for working capital to sustain operations? Am I trying to smooth out my cash flow because invoices are being paid late? Knowing the exact purpose of the funds helps you match with the right kind of finance. As Sharon from Choice Business Loans emphasised: “Understand your actual need first — then find the funding that fits.”   You’ll Still Need a Business Plan Even without giving up equity, funders want to see: A clear business model A cash flow forecast (ideally 12+ months) Details of how the funds will be used and how the business can repay Nicola from Innovate UK stressed the importance of viability  — both of the business and the proposed project. That means your forecast must be realistic and supported by clear assumptions.   Grants Aren’t “Free Money” While grants don’t require repayment, they do come with: Strict eligibility criteria Intense application processes Often, a requirement to cashflow the first quarter  of the project As Nicola put it: “Even with grants, they assess the risk to the public purse. You’ll need to prove your business is viable.”   Preparation is Key Whether applying for a grant or loan, the basics matter: Check your credit score. Yes, your personal credit score. You're the director responsible for your business, right? Make sure your business bank account shows good conduct (no bounced payments) Know your personal risk tolerance , especially around things like personal guarantees. How much are you willing to put on the line for your business? As Lisa said, “Just don’t panic. Take your time, prepare well, and ask for help.”   Coming Up Next: In Part 2 , we’ll break down the do’s and don’ts  of applying for non-dilutive funding — including common mistakes founders make, and how to avoid costly pitfalls.

In our last blog, we explored the key paths early-stage founders can take to fund their growing start-ups — bootstrapping, borrowing, or raising equity investment. But how do you actually decide  what’s right for you? In this follow-up from our first webinar in the series, generously supported by the British Business Bank, we’re sharing 7 essential questions to help you get clear on your funding strategy so you can grow on your own terms.   ❓1. What kind of business are you building? This is your foundation. Are you a: Steady-growth service provider? Product-based brand scaling through e-commerce? High-growth tech company aiming for rapid market share? The type of business you are building determines the type of capital that's right for you. Investors want scale. Lenders want stability. Bootstrapping thrives on efficiency. You need to find the kind of money that's right for you and your business model. Remember, VC money isn't right for everyone!   ❓2. What’s your runway? Can you afford to self-fund a few more months? Or do you need capital now  to launch or grow? Bootstrapping is great — but if cash flow is tight and opportunities are passing you by, it might be time to look at other options. If you’ve got breathing room: Bootstrap If you’re stalling growth: Consider debt or equity   ❓3. Do you want to stay in control? Equity fundraising means sharing ownership — and often, decision-making. If maintaining control is critical to your vision, explore non-dilutive finance options first, such as grants, loans, and startup funding schemes. Remember, there’s power in owning your business fully — even if it grows slower. ( And check back here to read upcoming blogs on non-dilutive finance options!)   ❓4. Can your business afford repayments? If you’re considering a loan, ask yourself: What’s the cost of the loan in real terms? Will this funding create ROI within the loan term? Can my cash flow handle monthly payments? One great tip to help answer these questions is to create a cash flow forecast with sensitivity checks. For example, reduce your revenue projections by 20% and see if you still survive.   ❓5. Are you truly ready to pitch? If you’re leaning toward raising, make sure you have: Strong traction (users, revenue, or growth) A compelling pitch and solid deck A clear use  of funds The energy for the investor search — it’s a full-time job! You don’t want to be pitching out of desperation, as investors will be able to see that. What's more, investors want to see their money going towards your growth, not covering payroll or keeping the lights on. Make sure you have enough of a runway to be able to afford the time and expense of seeking equity investment.   ❓6. Do you understand your own risk tolerance? This one’s about you. Are you okay with personal guarantees? Delayed income? Giving up control? Understand what kind of risk you’re comfortable taking — and build your plan accordingly. There’s no shame in playing it safe if  it aligns with your goals.   ❓7. Have you spoken to someone neutral? Talk to someone who isn’t trying to sell you anything — an advisor, a mentor, or your local business support organisation. (In the UK, this could be a Growth Hub or Local Entreprise Partnership. Or it could be our team at Breakthrough Labs!) Sometimes, just explaining your plan out loud helps you hear whether it makes sense. Remember, it’s not about finding capital. It’s about finding the right capital, at the right  time.   💡 Final Thought The best founders don’t just chase funding — they align funding with their vision. Whether you bootstrap, borrow, or raise… make the call with intention, not impulse. You’ve got this. 👉 Need a place to start? Check out tools from the British Business Bank or join our community at Breakthrough Labs where we'll support you every step of the way.