Securing funding is arguably one of the most critical tasks for a fledgling start-up trying to get on its feet. Like many tech players, B2B payment platform Durianpay has had to work feverishly to stand out in a crowded market to attract the attention of angel investors and venture capitalists (VCs).
After launching in May 2021, Durianpay focused on engaging with its network of investors, presenting them with a compelling business case. Their targeted approach to filling gaps in the payments sector — combined with the founders’ two decades of experience — made them appealing to early investors.
The strategy clearly worked, and the start-up has parlayed the funding it received into a business that today processes over $1 billion in transaction volume annually. The firm’s suite of solutions include online payments for websites and apps, analytics services and the provision of payment links.
“We navigated our early funding journey by leveraging a robust network of angels and investors as well as crystallising our value proposition,” said Natasha Ardiani, Durianpay’s co-founder and chief operating officer.
WORKING A TOUGH CROWD
The environment for securing start-up funding has become tougher in recent years, noted Ms Ardiani. As the valuations of big tech companies globally experienced a sharp correction, early-stage investors re-evaluated their criteria for assessing start-ups. “While big tech has largely recovered, early start-ups have not,” she revealed.
This led to a shift in investor priorities, focusing more on solid financial fundamentals like net revenue margin and customer acquisition costs over traditional metrics such as total payment volume and gross transaction volume. Durianpay’s response was straightforward and effective. Said Ms Ardiani: “There is no roundabout way to secure investments other than a well-defined market strategy, solid team and strong traction.”
MAKE AUTHENTIC CONNECTIONS
For Durianpay, building a strong network comprised of “authentic connections” was a critical part of its funding strategy. Ms Ardiani advised start-ups to seek out and engage with angel networks and VCs early, ensuring they are able to clearly articulate their value proposition while also being open to feedback.
“Given you already have formed a value proposition coupled with a go-to-market strategy, these early conversations can help you shape your problem statement or vision better,” she said. “Not just that, talking to these folks will also help you understand the mood of the market and what they are looking for in a certain company in a certain vertical.”
Ms Ardiani’s involvement with the XA network, a leading tech investment network in Southeast Asia, has taught her the benefits of participating in a diverse and experienced community. “Being part of such a network enhances credibility and increases the visibility of a start-up, improving the chances of attracting funding and strategic guidance,” she shared.
Furthermore, she advised start-up founders not to view rejections as setbacks, but rather as opportunities to refine their pitches and business approaches. “What is important is not to take rejections personally,” she stressed. “Try to get behind the why and the actual concerns. More often than not, you actually learn from rejections.”
FUNDING EXPANSION
Moving forward, Durianpay has set its sights on expanding its business operations, and concentrating on hitting key performance indicators in 2023. The funds they have secured are earmarked for strategic initiatives; from boosting customer acquisition and expanding their team to beefing up their risk management and improving their product range.
Durianpay’s well-defined value proposition, strategic networking and openness to feedback and rejections has helped the company to attract the right investors. This approach has not only positioned the firm for near-term growth, but also paves the way for success in the long run.