Post #69: Fundraising Strategy for Pre-Revenue Blue Economy Startups

Why a Fundraising Strategy Isn’t Optional

Sometimes in early stage startups, financial strategy often isn’t given the attention it deserves.

It’s understandable: when you're juggling tech, operations, partnerships, impact goals, etc., the financial strategy often gets pushed down the list. But this is a serious risk in my opinion.

Without a clear fundraising strategy, startups often fall into “firefighting mode” — scrambling for capital when time or traction runs out. That not only erodes founder focus but also undermines investor confidence. Investors want to see not just a good idea, but a credible plan and competent team to turn that idea into a commercially viable business.

This post breaks down what a fundraising strategy actually is, why it matters even before your first revenues, and how founders can start building one — especially in sectors like ocean tech, where timelines are long, and funding paths can be complex.

Why You Need a Fundraising Strategy (Even Before Revenue)

If you're an early-stage founder, especially in the blue economy, chances are you're juggling product, partnerships, pilot projects and so on — with fundraising somewhere in the mix. But too often, financial strategy gets left behind in favour of doing. That’s a risk.

Without a clear roadmap for how you’ll finance your next 12–24 months, you can end up:

• Reacting instead of planning: Scrambling for cash when you're down to your last few months of runway means you’re negotiating from a weak position — and often with poor terms.

• Sending mixed signals to investors: Funders want to see traction, yes — but they also want to see that you’ve thought through how much money you need, when, and why. No one wants to back a black box.

• Wasting valuable time: Without a strategy, founders often spend hours chasing grants, VCs, or pitch events that aren’t right for them. A strategy narrows your focus to what fits.

• Missing commercial milestones: You can’t grow without knowing what milestones matter to investors and how to hit them — whether that’s your first paid pilot or £10K in monthly revenue.

Put simply: having a funding strategy doesn’t mean having all the answers — it means knowing the direction you're headed and what you’ll need to get there.

The Danger Zone Between Pre-Seed and Seed

For many early-stage founders, particularly in the Blue Economy, there's a noticeable "danger zone" between pre-seed and seed. It’s that awkward stretch where the grant funding runs thin, the MVP is half-built, and traction is still forming — but you’re not quite “venture-backable” by traditional seed standards.

While pre-seed capital (grants, pitch competitions, angel cheques) often supports idea validation and early prototypes, most institutional seed investors are looking for:

• A built product or validated tech

• Initial revenue or commercial pilots

• A credible go-to-market plan

• Signs of repeatability or scalability

  
  

This leaves pre-revenue Blue Economy startups — which often have deep R&D, regulatory hurdles, and longer gestation periods — stranded in a financing no-man’s-land. It’s why hybrid approaches, like bridging grants, convertible notes, or milestone-based fundraising, can be critical during this phase.

Having a clear strategy to navigate this danger zone — and communicate your roadmap to becoming “venture-ready” — is one of the most overlooked parts of early-stage fundraising.

How to Structure Your Fundraising Strategy

If you're working on a solution for the ocean — whether it's autonomous vessels, sustainable aquaculture, or environmental data — your journey to revenue is probably longer and more complex than for typical tech startups. That’s why having a clear fundraising strategy is important. It’s not just about raising capital, but about understanding your runway, setting milestones, and showing potential funders how you plan to turn your vision into something commercially viable.

1. Outline Your Milestones — Then Estimate Costs

Blue economy ventures often face extended timelines for R&D, testing, and partnership development. The first step is to define what meaningful progress looks like for your business:

• Completing a prototype or field test

• Securing local partnerships (e.g. with ports or marine authorities)

• Gathering environmental or impact data

• Achieving a specific Tech Readiness Level

• Gaining regulatory clearance or a commercial pilot

Once these are clear, try to assign rough cost estimates and timelines. This will help guide your funding ask and ensure your raise is aligned with the actual needs of your business.

2. Match Funding Types to Your Stage

It’s easy to lose time applying for funding that’s not a good fit. Here’s a quick guide depending on your current stage:

Before Revenue or Pilot Stage

• Grants & competitions: e.g. TRIG, EEA Grants, and ocean-specific innovation calls

• Accelerators: Blue/Climate-focused programmes like Beta-i, Katapult Ocean, NOA

• Angels & early supporters: Preferably with relevant background or values alignment

Pilot-ready or Post-Pilot

• Blended funding: Some equity, some grant

• Impact investors: With interest in ocean/climate impact (e.g. Earth VC, Ocean 14)

• Corporate partnerships: For co-development or co-funding trials

Commercial-readiness

• Venture funds: Especially those with a climate or frontier tech lens

• Larger public funds: e.g. Horizon Europe, EIF-linked schemes

• Project-based funding: For capital-heavy models (e.g. infrastructure or offshore tech)

3. Plan Ahead — With Milestones in Mind

Because many blue economy solutions have longer development timelines and niche applications, funding often requires more lead time. It's smart to start your search well before you're in urgent need of capital.

• Sync your raise with technical or partnership milestones

• Give grants and impact funds plenty of time — they tend to move slowly

• Approach it in phases: first to de-risk, then to grow

And avoid staying in “forever fundraising” mode. Knowing when you’re actively raising — versus building relationships or collecting feedback — will help you stay focused.

4. Frame the Opportunity Clearly

It’s easy to lead with the problem — ocean degradation, plastic waste, biodiversity loss — but funders also want to understand the opportunity.

Try to answer:

• Why now? (e.g. new regulation, tech readiness, demand signals)

• How will your solution generate revenue (even if it takes time)?

• What exactly will this funding unlock?

Keep it straightforward. You don’t need a full financial model, but a clear sense of your funding ask, burn rate, and path to traction will go a long way. Especially in emerging sectors, clarity builds confidence.

Common Fundraising Pitfalls for Ocean Startups

Navigating early-stage fundraising is rarely straightforward — especially in a space as emerging and specialised as the blue economy. Here are a few common traps that founders can avoid with a bit of forethought:

1. Delaying Commercial Thinking

Ocean startups often have strong technical or scientific foundations, but overlook how that tech translates into a viable business. Even if you're grant-funded now, eventually you’ll need revenue to scale. Don’t wait too long to define your route to monetisation — even if it’s indirect, such as through data services, licensing, or partnerships.

2. Going After Every Grant

It’s tempting to apply for every grant or challenge fund available — especially when budgets are tight. But shotgun-style grant chasing can drain focus and slow progress. Prioritise grants that align with your mission, stage, and geography, and build out a clear internal system for tracking them.

3. No Investor Readiness Materials

A surprising number of founders meet with potential funders without having a clear narrative, a basic financial overview, or even a short deck. You don’t need a flawless dataroom, but you do need to show you’ve thought about how much you’re raising, what it’s for, and why now.

4. Underestimating Time to Raise

Fundraising almost always takes longer than expected — even for experienced founders. From first contact to funds in the bank, it’s often 3–6 months (or more). For new technologies in niche markets like marine robotics or seaweed farming, it can be longer. Plan accordingly so you don’t run out of cash while still in conversations.

5. Not Building Relationships Early

The best funding conversations are warm ones. Start connecting with investors, partners, and potential supporters well before you need money. Send updates. Share milestones. Ask for feedback. Blue economy funding is still a relatively small ecosystem — relationships go a long way.

Final Thoughts

Fundraising isn’t just about money — it’s about building a roadmap that supports your mission, keeps your startup afloat, and signals confidence to your team and stakeholders. In the blue economy, where timelines are often longer and commercial models still evolving, having a clear, realistic funding strategy is even more critical.

Whether you’re at the R&D stage or testing your first pilot, the earlier you start mapping your financial path, the stronger your position will be when opportunities — or challenges — come your way. This blog is a small nudge to take stock, prioritise sustainability (both oceanic and operational), and remember that capital is a tool — not a goal.

Check out Y Combinator resources for some more info even if more geared towards seed stage: https://www.ycombinator.com/library/4A-a-guide-to-seed-fundraising

I'll be building out more founder-focused tools and funding prompts soon via OceanTech Insider. Stay tuned.

Warm wishes

H