Growth Capital Planning: Getting to Your Next Round or an Exit
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We understand that not every entrepreneur is a CFO, a CPA, or has a financial background. This webinar is to help founders figure out which metrics to prioritize during growth capital planning so that your startup is financially fit when applying for funding; whether it is venture debt, venture capital, or whatever form your funding takes.
TIMIA Capital President, Monique Morden, welcomed Brian Yoon of Reinnovate Studios to co-host Growth Capital Planning: Getting to Your Next Round or an Exit.
In this short post, we’ve outlined some of the key points of their discussion.
The Path to an Exit
Monique and Brian discussed the current challenges of growth capital planning in 2024 and what founders should think about as they move toward getting to their next round or an exit. The fundraising environment for founders in the current market has been hard, with lower valuations and slower revenue growth expectations. And, there’s more investor scrutiny, with a laser focus on profitability and cash efficiency since the market changed in 2023.
“For startups, in the North American region, we estimate that roughly a third of companies currently have less than six months of runway based on their current burn rates.”
– Brian Yoon, Reinnovate Studios
Let that sink in: roughly 1/3 of startups are estimated to have less than 6 months runway based on current burn rates.
Even with the market projections for the rest of 2024 and into 2025 are thought to be bleak by some, there are some things founders can do in the process of building and planning their startup that can help overall.
Financial Packaging is Everything
- Metrics like revenue growth rate, payback period, net dollar retention, and burn multiple are critical for fundraising.
- Financial model transparency, tight integration across plans, and optimal capital structure thinking are vital.
- Scenario planning for best/worst cases, with/without new capital raises
Even with the unease around market rates, with a tight handle on metrics, founders can navigate today’s challenging fundraising environment and position themselves for scalability, profitability, and ultimately, a strategic exit.
Click on the YouTube link above or this one right here to watch the full webinar from TIMIA Capital and Reinnovate studios.
Interested in learning more about venture debt and which non-dilutive financing options might be available to you? See if you qualify with TIMIA Capital.
Looking for more resources? Check these out.
Want to hear more from Monique and Brian? Find them on LinkedIn!
Follow Monique on LinkedIn
Follow Brian on LinkedIn
