Challenge
Startups have limited funding options at the early stages of their business. It is also challenging to find out what is the right investment type for a particular business (equity vs debt vs alternative options).
Moreover, it is essential to have financial projections/statements that would reflect the risk/return characteristics of the business for the managers, owners and investors. Therefore, startups need guidance from the financial experts to assist them in making their business attractive to the investors.
Solution
Our client with an innovative business idea needed initial investment to turn their idea to business. We firstly analyzed the cash flow projections in different scenarios and calculated how much capital is needed. Then our experts evaluated all the possible financing forms for our client.
We found a solution which requires giving up the minimum amount of shares and provides full funding for the business for the next 3 years. With the help of this solution our client was able to reach break-even a year earlier than planned.
Result
Target financing goal was exceeded by 200%
Client - US tech startup
