Rethinking banking and microfinance

Impact of Financing

As some of you may have seen, we’ve recently announced a round of financing. The two great new investors involved are Point Nine Capital and Runa. Our exciting news was covered online at TechCrunch, Venture Village and The Next Web.

Financing announcements, like most press, are orchestrated events. You control to some degree what you want said about you, who should say it and the noise you make about all that is being said. There are two schools of thought on this. The obvious one is that it’s great for everyone to hear about this. It’s a major, rare event in the life of a company, it shows that it has a bright future ahead and attracts the eyes of both its own industry as well as the investment community. So shout it from all the rooftops, the majority theory goes. The minority approach takes the opposite perspective. Financing is great but it distracts the company from focusing on its client, it distracts the team from the vast efforts still ahead and it’s a checkbox not a fireworks show in the company history. Best to stay humble, stay quiet and get back to work.

They’re both right to some extent but both slightly miss the real impact of a financing round and what it enables. It’s the ability to build a better product faster for your clients. It’s the ability to add more amazing people to a growing team to better serve those clients. And it’s the freedom to be creative, experiment and innovate on a global stage. These are things which are certainly worth talking about and which do not distract but serve to motivate you on your mission.

When viewed from this light, no matter what some blogs say or don’t say, those who should be at the limelight of every financing round are not the company executives or the investors but the clients who’s problems are going to be solved faster and better than ever before. After all, that’s why the company came to exist in the first place.