Funding in an uncertain market: using venture debt to bridge the gap

While a handful of tech companies like Zoom and Shopify are enjoying massive gains as a result of COVID-19, that’s obviously not the case for most. Weaker demand, slower sales cycles, and customer insistence on pricing concessions and payment deferrals have conspired to cloud the outlook for many tech companies’ growth.

Compounding these challenges, a lot of tech companies are struggling to raise capital just when they need it most. The data so far suggests that investors, particularly those focused on earlier stage financings, are taking a more cautious approach to new deals and valuations while they wait to see how individual companies perform and which way the economy will go. With the outcome of their planned equity financings uncertain, some tech companies are revisiting their funding strategies and exploring alternative sources of capital to fuel their continued growth.

Forecasting growth in a pandemic: a difficult job just got harder

For certain businesses, COVID-19’s impact on revenue was immediate. For others, the effects of slower economic activity and tighter budgets surfaced more gradually with deals in the funnel before the pandemic closing in April and May. Either way, in the second half of 2020, technology CFOs face a common challenge: How do you accurately forecast sales when there’s very little consensus around key issues such as when business activity will return to pre-COVID levels and what the long-term effects of the crisis might be?

Unfortunately, navigating this uncertainty is just as daunting a challenge for investors. These days, equity investors’ assessment of a company’s growth potential, and the value they are willing to pay for that growth, aren’t just impacted by their view of the company itself. Equally important is their assumptions about when the economy will recover and what the new normal might look like. This uncertainty can lead to situations where companies and their potential investors have materially different views on valuation.

Longer funding cycles, more investor-friendly deals

While the full impact of COVID was felt too late to have a material impact on Q1 deal volumes, recently released data from Pitchbook and the NVCA suggest that 2020 will see a significant decrease in the number of companies funded, possibly by as much 30 percent compared to 2019 among early stage companies. And, while it often takes several months to see evidence of broad trends in investment terms, anecdotal evidence indicates investors are seeking to mitigate risk by demanding additional protective provisions.

Startups – TechCrunch

Using Linkedin to reach out cold? (B2B)

Hey there,
Hoping for some clarity on using Linkedin inmail to message your potential 'shot callers' at a business you would like to onboard as a customer. A few questions are:
1) What is your cold email template or 'go to' which generally gets clicks / opens?
2) Are you on Linkedin Premium? (I will be upgrading once we start reaching out to people)
3) How do you identify who is the 'shot caller' in your desired field? Ie, ours is a centralised marketing and procurement platform for construction professionals – so I'm unsure if we should target a General Manager or Marketing Manager or CTO.. Any advice appreciated.
Cheers

submitted by /u/successharvester
[link] [comments]
Startups – Rapid Growth and Innovation is in Our Very Nature!

Mycelium: The Egyptian Startup Using Fungi to Create Sustainable Building Materials and Products – SCOOP EMPIRE

Mycelium: The Egyptian Startup Using Fungi to Create Sustainable Building Materials and Products  SCOOP EMPIRE
“startups when:1d” – Google News

This Indore-based Edtech Platform Is Using DIY Kits To Spruce Up Preschool Learning – Inventiva

This Indore-based Edtech Platform Is Using DIY Kits To Spruce Up Preschool Learning  Inventiva
“sweden startups when:7d” – Google News

At what stage should you start using a CRM?

Hey all, We’re about to launch a b2b SaaS company and wondering if we should use spreadsheet for the first ) months or so to keep track of our customers and their customer cycle etc … OR incorporate a CRM (hubspot or sales force) straight away. Also, any pros / cons to your preferred CRM would be appreciated. As a reference, we’ll be reaching out to most construction professionals (builders, architects etc) in the whole nation so it’ll be a huge data base.

Thanks!

submitted by /u/successharvester
[link] [comments]
Startups – Rapid Growth and Innovation is in Our Very Nature!

[Startup Bharat] This Indore-based edtech platform is using DIY kits to spruce up preschool learning – YourStory

[Startup Bharat] This Indore-based edtech platform is using DIY kits to spruce up preschool learning  YourStory
“sweden startups when:7d” – Google News

Outsourcing my online marketplace build or using something like sharetribe

So I have an idea for an online marketplace platform that allows individuals to create profiles and sell remote (zoom video) sessions for things like guided meditation, etc.

Early on I noticed sites like sharetribe will allow you to build this using their platform and it pretty much has everything baked in, but it comes with a price tag for sure.

So, being cheap, I decide to try and find someone on Fiverr to build it for me, and although he's making progress, there are obvious limitations being presented such as the inability for users to rank and review sellers (huge), and individuals don't have the ability to build their own custom profile or list unique services. I basically am having to build all of this within wordpress for each person that registers (huge).

So, I'm at the point now where I'm trying to determine whether or not I should cut my losses with this guy on Fiverr and just use Sharetribe.

Ideally, I'd have thousands of dollars to have something solid built, but I just don't have that kind of startup capital right now, and I'm honestly still exploring what kind of demand there would be for this.

Anyone else have any experience here and can offer some thoughts?

submitted by /u/visionbreaksbricks
[link] [comments]
Startups – Rapid Growth and Innovation is in Our Very Nature!

[RealView Imaging in Israel Hayom] Israeli startup makes medical treatment using floating holograms a reality

A startup based in northern Israel has made that a reality. And it seems that investors are enthusiastic about the idea, too – last week, RealView Imaging raised $ 10 million in a Series C round of financing. RealView Imaging’s Holoscope-i system creates 3D volumetric holograms based on data from medical imaging, which float in free space, allowing physicians a unique form of access to the patient’s anatomy during invasive procedures.

Read more here.

The post [RealView Imaging in Israel Hayom] Israeli startup makes medical treatment using floating holograms a reality appeared first on OurCrowd Blog.

OurCrowd Blog