A regenerative take on funding
From potted plants to wild growth
Growth funding easily turns businesses into something similar to potted plants; reliant on external inputs to stay alive. A business may start fresh and full of potential but as soon as it runs out of external watering (invested money), it begins to dry out. In the worst case scenario that we want to avoid, growth becomes an illusion sustained by sheer force, not by health.
Regenerative thinking flips the traditional investment paradigm.
By aligning funding with a business’s organic structure and strategic purpose, growth becomes both sustainable and transformative. Instead of fuelling operations from the outside, regenerative funding focuses on strategic capital support that empowers businesses to scale on their own terms. Think of it as rooting operations into fertile soil.
Here’s how to make it happen:
1. Raise funding only for designated projects
Funding should act as a catalyst, not a crutch. That means raising money specifically for clear, well-defined growth projects instead of patching up holes in ongoing operations. This approach boosts lean development and valuable data gathering, both for the company and its investors, building trust and collaboration based on pre-agreed terms. Avoiding common investor–founder misalignments around fund usage can save significant amounts of time and money.
For businesses needing money to patch those holes in an unhealthy core, planning a designated investment project and committing to it is especially important. A recovery funding round can be a smart move for a company with a dysfunctional system but strong potential. Raising money for a strategically planned restructuring and executing the plan has shown good results with our clients, leading to profitable growth in just one year.
2. Create a living business plan
A plan is nothing, planning is everything – Dwight D. Eisenhower
A regenerative business plan isn’t a one-off PDF, it’s a living format. Linking your business plan to the shareholder’s agreement and updating it at agreed intervals helps keep investors aligned. Misalignments between founders and investors often stem from not having a shared plan or letting that plan grow stale.
A living document managed by the board of directors ensures everyone stays aligned with the company’s evolving strategy, keeping all stakeholders rowing in the same direction. This approach makes the work generative and adaptive by nature.
3. Understand and communicate asset value
To fund responsibly, you need to know your value. Build a clear understanding of your business’s intangible and tangible asset value and how this translates into valuation. It’s not just for investors. This clarity gives you a foundation for sound, strategic decisions and sets the stage for future valuation increases grounded in substance rather than hype.
4. Keep the core profitable
A self-sustaining company is a resilient one. By maintaining a profitable core, you’ll never be fully dependent on external capital. With a healthy operating engine, you can channel raised funds efficiently into specific growth projects, ensuring clarity, integrity and confidence in every round.
When the foundation is stable, every euro invested serves a purpose beyond survival. It becomes a multiplier for healthy expansion.
Regenerative funding in action
We believe your company needs love, not just money. Here’s how we do it:
A holistic 5D growth assessment helps determine the focus and targets for the investment round
Crystallise a strong business design to know exactly where external funding is needed and when
Define the project plan, budget and asset value gives confidence and clarity around valuation
We focus on finding the right investors, partners who share your purpose and passion and want to build long-term value together, or public funding instruments designed for your current stage
With our clients, we’ve executed several private investment rounds and public fundings. We’ve also made our own investments in client companies.
Image: Fashion Finland (Lovia)– Lovia’s €500,000 funding round excecuted with Abraca got media attention with seven influencers and well known investors.
From angel investments and convertible loans to partnership deals, Abraca’s broad network and regenerative mindset ensure that companies aren’t just funded, they’re boosted within a supportive ecosystem.
We’re organising an event on regenerative growth and funding together with speakers from Finnish Business Angel Network, Business Finland and successfully internationalised growth business Lilja the Label. Read more and RSVP for 15. May afternoon in Helsinki.
Article written by Anna Sofia Abrahamsson, the founder & CEO of Abraca
