Oil and Gas Startups
Finances are Crucial with Oil and Gas Startups
When you’re thinking of oil and gas startups versus an oil and gas scaleusp, or just an energy scaleups overall, there’s really unique features that distinguish the two from one another. One of the first things is going to be financing. So obviously in oil and gas startups, a lot of these businesses are just going to be on a shoestring budget, or maybe just have a little bit of seed funding versus a scale-up that may have already been through multiple rounds of raising money. So they might be on their series B or C or they might even be further beyond that, where they’re looking to do an initial public offering or IPO. Where they are looking to scale their business by bringing in money, raising money from investors (see successful $45M IPO here). Another one is going to be personnel, right? So, you know, in the beginning you might just have a founder and a co-founder, maybe one or two employees as a startup.
Energy Scaleups and Key Hires
But as a scale up, you’re going to have key hires. You probably have already got an HR person to help you build your team. You’re looking for your executive level team. You’ve got all those people, helping you build your business. You’re working more on your business, not in your business. And then another one is going to be products. So products as an oil and gas startups, you might be looking for your product market fit. You might be designing your part. You might be surveying potential customers about what the market wants, or you might just be working on your prototype. Versus a scale-up you’ve already got your product market fit. You’ve already got customers. You might be, you know, tweaking your product a little bit, but you know where your product lies in the market, you know, that the market wants it.
It’s All About Growth
Uh, you might even be adding new products when you’re scaling up. So you might be adding new lines of businesses, new services. So those are distinct differences between oil and gas startups and a energy scaleups is, you know, they’re in two different phases of the business cycle. And, you know, oil and gas startups might not even make it to the scale-up phase, right. Whereas a scale-up they’ve already passed that startup phase and they are looking to really grow their business. Uh, they’re looking to write that next chapter. So those are some key differences that keep in mind when you’re looking at oil and gas startups really got started versus energy scaleups in the energy industry or any industry whatsoever in business general.
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