Congratulations, you’ve just secured a new round of funding! The champagne corks have popped, and the celebratory tweets have been sent. But once the confetti settles, you’re left with a pressing concern: how do you navigate the labyrinth of tech challenges that come with this new financial windfall?
If you’re a startup or a scale-up that has recently secured funding, this article is for you. We also extend a warm welcome to venture capitalists and business analysts who are keen to understand the tech implications of a funding round. We’ll delve into the critical areas you should focus on, offer some case studies for inspiration, and highlight how IT outstaffing can be a game-changing solution.
The Importance of Tech and Team Alignment Post-Funding
Securing funding is a significant milestone, but it also introduces new complexities, especially when it comes to your tech stack and team. Now is the time to evaluate if your current technology is aligned with your growth plans and what your current team is able to do. Alignment between your business objectives and your tech stack plus your team is not just a nice-to-have but a crucial success factor.
What are the main Pain Points after raising money as a leader?
- Rapid Scaling: With fresh capital, the pressure is on to grow—fast. But scaling hurriedly can lead to a host of issues, like technical debt and performance bottlenecks or hiring the wrong people with the wrong skill sets.
- Tech Stack Evaluation: Your MVP’s tech stack may not be equipped to handle this new phase of growth. Going from a monolithic app to a microservice architecture is a big leap.
- Resource Allocation: How do you allocate the new funds efficiently across various tech needs without wastage?
How do your Personal Goals and Drivers now change after a funding round?
- Achieving Milestones: You’ve got investor expectations to meet. The tech choices you make now will directly impact your ability to hit those key milestones.
- Operational Efficiency: A streamlined tech stack will lead to better operational efficiencies, a critical driver for any funded startup.
Are these keeping you up at night?
- Budget Constraints: Even with new funding, there’s a limit to the burn rate and how you spend your precious resources.
- Team Skillset: Your current team might not have the expertise to navigate the complexities of a more robust tech stack or you may only have a short term project that needs that specific tech stack for a month or two.
So where can you look for those seamless technical solutions to help you after a funding event?
To offer some inspiration, let’s look at a couple of companies that managed their post-funding tech challenges exceptionally well.
Found App: Rapid Timing and Skilled Expertise needed
Found, a trailblazing healthcare startup, recently secured a whopping $100 million in funding. While their web app was ready, they faced a challenge: they needed mobile apps for both Android and iOS, and they needed them fast. Limited in-house expertise in mobile development added another layer of complexity.
The Solution: Agile and Real-time Adaptations
Found chose Spiral Scout for our specialized expertise in mobile development. We adjusted our standard two-week sprints to one-week cycles to meet Found’s tight two-month deadline. Real-time feedback loops with Found’s team allowed us to make on-the-fly optimizations, including pivotal A/B tests to fine-tune the user experience.
Technology Choice: From Expo to React Native
Initially, Found considered using Expo for their mobile app. However, as we delved deeper into their post-release goals, we suggested React Native as a more sustainable and scalable solution which would also be easier for them to find longer term engineers they could hire internally. This consultative approach ensured Found was set for long-term success, not just a quick launch.
Results: A Partnership Beyond Project Delivery
Our team delivered the MVPs for both mobile platforms within the aggressive two-month window as their only mobile developers. But our partnership didn’t end there. We’ve continued to work with Found to develop new features, make improvements and support their mobile strategy. Their growth has been meteoric since, more than 500% year-over-year, and they’ve been recognized as a leading innovator in their industry.
The Value Proposition: Strategic Tech Choices for Sustained Growth
Our engagement with Found embodies our value proposition perfectly. Found was looking for more than just code, and we were able to offer strategic tech choices aimed at sustained growth. Our agile and flexible approach means we can adapt to your needs in real-time, ensuring not just a successful project delivery but also long-term success.
Navigating the tech challenges of a funding round isn’t easy, but with the right partnership and strategic choices, it’s more than possible. Found is a living testament to what can be achieved when these elements come together seamlessly.
Temporal.io: Seamless technical solutions and teams
Securing a significant funding round is a monumental achievement for any startup, but it also brings forth new challenges—especially on the technical front. Temporal.io, an open-source microservices orchestration platform, found itself in this exact situation. With over $100 million in new investment, the pressure was on to expand their services, starting with the development of a PHP SDK.
Addressing Technical Gaps
While funding can accelerate a company’s growth trajectory, it often exposes gaps in technical expertise. Temporal.io had a strong in-house team but lacked the specific skill set for PHP SDK development. This is a typical pivot point for many companies post-funding—having the financial resources but not the technical manpower to scale effectively.
Strategic Partnership with Spiral Scout
Enter Spiral Scout. Our team recognized Temporal’s need for specific technical skills and offered a solution that would enable them to capitalize on their new funding without the overhead of hiring and training a new internal team. We didn’t just provide coders; we provided seasoned tech strategists who could seamlessly integrate with Temporal’s existing team and objectives.
The Importance of Quick Action
Time is of the essence after a funding round. Investors want to see traction, and the market won’t wait. We understood this urgency and implemented quick sprints to develop the PHP SDK. By aligning our technical capabilities with Temporal’s strategic goals, we ensured that they could make the most out of their new funding in the shortest time possible.
Key Takeaways and Future-Proofing Your Tech
Our partnership with Temporal.io serves as a case study for companies navigating the technical complexities that come with new funding. Your company might also face similar challenges—whether it’s scaling your tech stack, entering new markets, or even reducing existing technical debt. Spiral Scout specializes in identifying and acting on these pivot points, providing not just technical expertise but also strategic value.
When you find yourself at a critical pivot point, like securing a new round of funding, consider partnering with a tech solutions provider who understands both the technical and strategic aspects of your business. It could make all the difference in effectively utilizing that fresh injection of capital.
The Role of IT Outstaffing
When navigating post-funding tech challenges, one solution that can offer immediate value without a long-term commitment is IT outstaffing. With a focus on “Speed-to-Market”, “Cost-Efficiency,” and “Getting the right skillset,” IT outstaffing offers the following benefits:
- Agility: Staff augmentation allows you to scale your team up or down quickly, offering flexibility in a volatile post-funding landscape and reducing a lot of the overhead with hiring full-time employees in different parts of the country or world.
- Expertise: Outstaffing companies come with a wealth of experience, ensuring that your tech stack is both modern and robust. They can call upon senior members in their organization to provide recommendations and their experience so you aren’t really just getting one engineer but an engineer backed by an entire organization’s collective experience.
- Cost Efficiency: You get the talent you need without the overhead costs associated with full-time hires.
Conclusion
Navigating the tech challenges of a new funding round can seem daunting, but it’s more than manageable with the right planning, resources, and partners. Consider IT outstaffing as a flexible, efficient way to augment your existing team and tech stack, ensuring that you’re well-equipped to meet your new growth targets and investor expectations.
Remember, a funding round is not just an injection of capital; it’s an infusion of trust and expectation. Make sure your technology choices reflect that.
