The July 17, 2023 Business Insider Germany article discussed the concern that the start-up scene is running out of money. However, this is not inevitable, as there are sustainable investments and robust business models that are attractive to both company founders and investors.
A perfect example of this is the organically growing, multi-level recommendation network Crossworx. Interestingly, Crossworx was financed entirely from the founders' own funds until the product was ready for the market, a method known as "bootstrapping". This bootstrapping not only demonstrates the founders' financial resilience and confidence in their product, but also makes Crossworx an ideal candidate for partnerships with established organizations.
With its extremely cost-conscious, granular and diversified business model, which can be easily transferred to different industries and geographic regions, Crossworx can be seamlessly integrated and scaled into a strategic partner's organization. This feature provides security for potential investors and partners as risk is minimized due to the broad risk diversification and incipient success of the business model.
In addition, Crossworx also offers start-ups, for example, an additional sales channel that helps to reduce customer acquisition costs (CAC) and increase customer lifetime value (CLV). This is beneficial for both the founders and investors of the start-ups, as it increases the potential for a higher return on their investment.
The financial challenges in the start-up scene are therefore not insurmountable. With the right strategies, innovative business models and successful bootstrapping methods such as Crossworx, there are several ways to overcome these hurdles. It is up to investors to recognize the benefits and sustainable value of these models and adapt their investment strategies accordingly.
In short, the financial crisis in the start-up scene is not inevitable, but an opportunity for innovation and diversification. By taking advantage of the opportunities offered by business models such as Crossworx, investors and start-ups alike can overcome these challenges and embark on a path to sustainable growth and success.
Just a few weeks after its official launch, crossworx's customers and partners already include not only private customers as referrers, but also companies from the CRM SaaS, motorhome, photo studio, management consultancy, bicycle manufacturer, hairdresser, online stores, craft businesses, IT service providers, accommodation providers, construction companies and also providers from the fitness industry in Germany, Switzerland and Austria.
Reference: Article from businessinsider.de from July 17, 2023
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