Lighter Capital

JULY 20, 2023

While a well-capitalized venture with several million dollars in the bank can behave like a large, established company from the jump, a bootstrapped startup has to manage cash more carefully, growing at a rate they can afford and control. Why do startups use debt financing? It’s best to start with the basics.

Debt Financing 52

Debt Financing Finance Equity Equity Financing 52

Sun Acquisitions

FEBRUARY 14, 2024

Consider options such as raising capital through equity financing or securing a bank loan to fund your expansion plans. While it provides capital without the burden of debt repayment, it dilutes ownership and may involve relinquishing some control.

Debt Financing 59

Debt Financing Equity Financing Finance Equity 59

Benchmark Report

JULY 1, 2022

First, the financing needs to be raised with consideration of the company's operating cash flows. For example, if the business uses debt financing, it should have sufficient funds to cover the interest and repay the debt.

Debt Financing 52

Debt Financing Finance Equity Financing Banking 52

Equilest

OCTOBER 9, 2024

Whether you're deciding how much debt to take on or how to manage equity financing, the right mix can lower your cost of capital and boost growth. The Role of Debt in Capital Structure How debt impacts business growth. Advantages and disadvantages of using debt. Downsides of relying too much on equity.

Capital Structure 40

Capital Structure Equity Financing Equity Finance 40

Lighter Capital

APRIL 17, 2024

Without assets, pre-revenue SaaS startups can’t get bank loans; SaaS entrepreneurs may have a shot if their business is generating revenue and they put up their home or personal savings as collateral. Venture debt usually includes warrant coverage in the deal terms, giving the lender some upside if the business does well.

Equity 52

Equity Finance Debt Financing Start-ups 52

Valutico

APRIL 17, 2023

The WACC formula derives the current cost of each form of finance, starting with the risk-free rate, the expected return on equity, and the costs associated with debt financing. You then weigh each source by its relative importance in terms of debt or equity.

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

Valutico

APRIL 17, 2023

The WACC formula derives the current cost of each form of finance, starting with the risk-free rate, the expected return on equity, and the costs associated with debt financing. You then weigh each source by its relative importance in terms of debt or equity.

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52