A startup needs capital to get started, but capital isn’t enough. As Vanessa Colella, global head of venture investing for Citi Ventures, points out, a startup needs an investor who will champion its brand. That belief can make all the difference as a business works hard to gain ground in an increasingly competitive business world.

Colella recognizes that most startup founders aren’t in business to raise money. But they need funding in order to bring their ideas to market. By learning as much as possible about the funder’s perspective, business owners can better position themselves to achieve their goals.

Ever-Increasing Funding Options

In the venture space, Colella notes that founders are seeing more funding options than ever. Most importantly, though, founders are seeing more resources that allow them to access these options. Today’s business owners have access to a level of transparency not previously available in funding. This allows them to know exactly what is required to land the funds they need.

Colella also notes businesses today have access to a better customer experience while seeking funding. “I think it’s really important as an entrepreneur you feel like you’re against the world to get your idea out, but you are the customer when it comes to raising money,” Colella says.

Interesting Trends

Colella has observed several trends in recent months that she finds very telling about the state of the industry. When HP and Oracle went public in the pre-Internet era, the founders were in their mid-40s. Today’s founders are much younger at the time of their public offering. Aaron Levie, co-founder of Box, is only 29, for instance, while Reddit co-founder Alexis Ohanian turns 32 this year.

“It takes companies less money to be successful at an early stage than it did ten years ago,” Colella says. “You’ve got the cloud, different distribution channels. What you hear less about is, ‘What are the implications for how long that takes and how young the entrepreneurs are who are being successful?’”

More Opportunities

In recent years, the number of accelerators and incubators on the market has grown exponentially, with accelerator Y Combinator alone having funded more than 700 startups. However, this large selection of opportunities has left entrepreneurs struggling to find the right funding source to meet their unique business needs.

Crowdfunding is also an area that has seen incredible growth in the past couple of years. In 2014, Kickstarter averaged more than $1,000 per minute in funding to total more than $1.5 billion pledged. As a whole, the crowdfunding industry provided more than $5.1 billion, a growth of almost double its 2012 numbers.

“If you’re a tech company, there is a whole lot of validity for thinking about things like Y Combinator or Techstars,” Colella says. “Because they really give you great validation for your idea.”

Colella finds that accelerators and incubators are ideal for sector-specific companies, like those dealing with healthcare. Funders who have had experience with the regulatory environment can really help sector-specific companies. Crowdfunding, on the other hand, is ideal for consumer products-oriented businesses because they clearly demonstrate consumer interest in a product.

Value-Added Capital

Venture capital firms are increasingly taking an interest in the value of a venture. Looking at the top venture capital firms, Citi Ventures found that six of those firms are heavily investing in businesses that they can help scale efficiently and effectively. Investors want to know that they can bring resources to a business before they put money into it.

“If you look back 10 or 15 years, the bulk of what was being communicated was investor first or, ‘These are the themes we invest in,” Colella says. “Today what you’re looking at is entrepreneur first. ‘These are the people that we’re championing.’”

Entrepreneurs are the customers, so figuring out which investors will be the champion of a startup’s projects or projects is essential.