Funding Tipp: Reducing complexity

- in Blog | 1 min read

Startups still like their “worst”, “real” and “best” case forecasts, established SMEs tend to found subsidiaries to develop new technologies. It certainly takes a lot longer to understand three forecasts as opposed to (trusting) one. Subsidiaries usually imply dependencies. From an investor perspective each company entails its own complexity and growth its own risks. Often in accordance with the degree of innovation. Complicating the case by presenting three forecasts (including assumptions), or increasing growth related risks by adding unnecessary dependencies, are some of the best ways to torpedo the financing (or sale) of the company itself.