In early 2016 Oneflare secured a $15 million investment from Domain Group after years of hard work. This will enable Oneflare to keep driving their business forward for growth.
Oneflare successfully secured early stage investment to help with growth, but just like any start-up cash flow was a massive struggle to overcome. The way they prioritised their spending was through lots of passion, no flash parties and lavish office.
It was no fluke as a young start-up to secure funding, they had to work on attracting the right strategic financiers for major funding, as scale-up investors they had to ensure they were strategically compatible and not just a source for funding.
The start-up culture in the 21st century
Start-up is not just a fancy word to describe a small business. A true start-up defines itself by their ability to innovate and reconfigure with incredible pace and freedom.
It was five years ago when the Oneflare business was started by a small group of people. The office was so small that if someone moved a chair no-one else could do the same. Like any new start-up they worked long hours on the brand they believed in. Passionate about there product this has now grown to a 75 strong team.
Oneflare stated “Being quick to try, quick to learn and quick to change drove passion to the team to move forward with growth”
Proven results for profitability
To fil the growth of the business they had to not just consider a financial investor but a strategic partner too. By doing it this way often leads you to more established trade players. The established trade player will have a lower hunger for risk than early stage investors so you have to offer more of a clearly demonstrated growing revenue stream.
Strategic investment fit
It goes without saying that when looking for a strategic investment fit and a strong financial partner, strategic placement is very important. You will need to consider the strategic fit from both the investor’s and investee’s perspectives. In other words, what are the opportunities for a relationship of mutual benefit?
When Oneflare approached Domain to discuss commercial partnership opportunities there were already obvious links between the two companies in place. During the conversations between both parties, Oneflare continued to develop to the brand to an appropriate level of product-market fit and were ready to drive scale forward.
Running a start-up will always be challenging and risky at the best of times, you have to put in the hard work before the benefits will come. You will need serious investment and great partnerships to help you drive the business forward to the next level. In order to succeed with growth you need to be passionate, responsive and able to move quickly.
Original article source by Brett Kaplan – Chief Financial Office at Oneflare