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Your Options for Capital

Updated: Jul 12, 2020

After tightening their budgets, some startups still see clear growth opportunities. Capital is needed to take advantage.


A range of options are still available but carry pros and cons.


Venture Capital


The reality: Even before the crisis, over 90% of business plans were declined.


The opportunity: After focusing deeply on their portfolios, some firms are opening again to conversations.


If you have a large market, competitive advantage, and a potential multiple, make your pitch. Deals could take longer.


Angel Investors


The reality: Many saw wealth deplete with the stock market.


The opportunity: Distrustful of the market now, they're open to startups with strong cash flow and social proof.


Debt Options


The reality: Banks are uneasy about over-leveraging.


The opportunity: A range of Treasury-backed programs exist as well as state, local, and corporate options.


Customers


The reality: Many only desire ways to cut costs.


The opportunity: Renegotiate contracts with discounts for pre-payments, especially if you reduce their operating costs.


Bonus: Strong customers may be open to strategic investment. Worth the discussion.


Asking for capital will be tough. If you show a solid business and amazing opportunities, be bold in seeking support.


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