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.
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.
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.
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.
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.