From lull to launchpad: how scaling business can use a downturn in funding to their advantage

The lull
Raising funding in 2024 has not been easy. The ScaleUp Institute’s 2024 Annual Report shows how 7 in 10 scaleup CEOs believe “they do not have sufficient capital to meet their current growth trajectory”. Pair this with the already challenging conditions scaleups have to face, and it makes for difficult reading. In this context, it is critical scaleups find a way to come through this tricky period in a stronger position. The lull in funding should be seen as a temporary industry reset rather than a permanent pivot. This downturn can help founders reset their own thoughts, assessing whether their business and brand is best positioned for the inevitable return of investors and their funding.  

Prepare for the upturn
However resilient founders and their business might be, lulls in funding can seem like all the chips are down—but they can also provide opportunities to strengthen. With less distraction and endless fundraising or investor calls, lulls can help scaling businesses reassess, sharpen and strengthen. Part of this reassessment should focus on asking yourself:

• Is my story sharp? Does it reflect my businesses focus, ambition and personality? ‍
• Is my value proposition clear? Am I articulating the market challenge and my solution to it or USP?  ‍
• Does my identity standout? Will it drive familiarity and favourability?

Being able to answer these questions with confidence can ensure that when momentum is with investors again – and it will – your brand is so compelling that investors can't help but take notice.  

Creating the launchpad
For those founders and leaders of scaling businesses who don’t feel confident in their response to the above questions, what actions can be taken?  

• Craft a compelling vision: Paint a vivid picture of where your company is headed. Your story should inspire confidence in your long-term potential. ‍
• Communicate how you differentiate: Know where you sit in the market—and how to explain how your brand and offer make you different.  ‍
• Refine your narrative: Clearly articulate how your business solves a pressing problem and emphasise the impact you hope to deliver ‍
• Embolden your brand identity: Don’t settle for an identity that just does the job. Be intentional, think of the emotional connections, the psychological associations you want your brand to drive home.  

Simply put, reassessing your brand position, narrative and identity can help you tell your story in a whole new light—building on your work to date to create a brand that looks like it has been in a business for years. Providing you with a brand – made of a sharp, compelling story and a distinct, memorable identity –to help you secure the funding that keeps you moving forward.  

Seize this pivotal moment
Brand can be the difference in your ability to convince investors that your business is ready to make an impact. By ensuring your story and identity is fit for your ambitions, you can invest in your business’ own potential. There might be a lull in funding, but that doesn’t mean there needs to be a lull in reassessing whether your brand is built for your next stage of growth.  

Accelerators is a sprint programme designed to help scaling businesses accelerate growth through the power of brand. If you are interested in hearing more, please email harry.tyler@brandpie.com

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