Knowing what each funder values, whether public, private or banking, is key to preparing a strong application and increasing your chances of securing funding.
Knowing what each funder values, whether public, private or banking, is key to preparing a strong application and increasing your chances of securing funding.
Knowing what each funder values, whether public, private or banking, is key to preparing a strong application and increasing your chances of securing funding.
The business financing market is becoming increasingly complex. Understanding the options and types of financing available is key to choosing the best one for your needs and stage of growth.
Securing funding doesn’t depend solely on having a good project, but on knowing how to present it correctly based on the financer’s profile. Each entity—whether public, private, or banking—evaluates different aspects before approving an application. Understanding what they expect to see in your company can make the difference between an approved and a rejected request.
Public organizations such as ENISA, CDTI, or regional institutes (IVF, ICF, SODECAN, etc.) look for projects that add value to the economy, drive innovation, and create employment. They expect to see a financially sound company, with a balanced financial structure, repayment capacity, and a viable medium-term business model. During their evaluations, reviewers assess the project description, financial projections, and consistency between expenses and revenue. They also value the level of innovation, growth potential, and the professionalism of the management team. To access grants or participatory loans, compliance with tax obligations and a contribution of own funds are essential.
Venture capital funds, business angels, and family offices are not just looking for stability, but for exponential growth and strong returns. They expect to see a scalable project, a committed founding team, and a large market where the model can be replicated. They analyze metrics such as customer acquisition cost, recurring revenue, proven traction, and the potential to multiply their investment over a 4- to 7-year horizon. They also value the clarity of the pitch deck, the project narrative, and transparency regarding risks. In this type of financing, strategic vision and the team’s ability to execute matter more than financial statements alone.
Banks and traditional credit institutions prioritize repayment capacity and financial stability. They expect to see a solid revenue track record, stable margins, and sound cash flow management. For younger SMEs, they typically request recent financial statements, a cash flow plan, and key ratios such as EBITDA, debt levels, or interest coverage. Although more banks are collaborating with public schemes such as ICO or AvalMadrid, many still require some form of collateral or guarantee, which may be relaxed when there is public backing or co-financing. The relationship with the bank and historical payment behavior also influence the decision.
Public-private co-investment funds and hybrid programs, such as those managed by ENISA together with investors or incubators, look for projects that combine economic viability with shared risk. They expect to see an innovation-driven company, with an investment round underway or already committed, and a clear growth plan. In these cases, the involvement of private investors is seen as a strong validation signal. The company must demonstrate management capability and realistic planning in terms of milestones, metrics, and scalability.
Although criteria vary depending on the type of financing, there are three common factors every financer expects to see: clarity, consistency, and commitment. Clarity in how the project and documentation are presented. Consistency between what is communicated and what the numbers show. And commitment from the team, both in terms of dedication and personal investment. A disorganized or inconsistent dossier can slow down or block even the best idea. Proper preparation, anticipating questions, and adapting the approach to each stakeholder are key to increasing your chances of success.
Each funding source has its own priorities, evaluation methods, and acceptable level of risk. Preparation is not just about gathering documents, but about tailoring your narrative and materials to the type of financer you are targeting. At Kleo, we analyze your company, identify the most suitable funding options, and help you prepare an application that speaks their language. Carry out the feasibility analysis and don’t worry—we’ll take care of the rest.
We’ll help you find it!
