Alternative Financing Solutions

In the last 2 months, I've spoken with 100+ founders, and the most recurring question is: "Is venture capital the only way to grow my business?" For many first-time founders, especially those raising their first seed round ($1M+), VC funding seems like the clear choice. But it comes with serious trade-offs: - equity dilution - loss of control - pressure for rapid growth From my experience working with bootstrapped, PE-backed, and VC-backed founders There are other paths depending on your vision and goals. Here are 5 alternatives to VC funding that founders should consider: 1. Debt Financing → Borrowing money from a lender that you repay over time with interest. ✅ Upside: You keep 100% control of your business. ❌ Downside: Missed payments put your assets at risk. 2. Investor Loans → Flexible options like convertible debt or angel investments. ✅ Upside: Delayed valuation and more flexibility than traditional VC. ❌ Downside: Potential future equity dilution or control issues. 3. Crowdfunding → Raise small amounts from many people (e.g., Kickstarter, Republic). ✅ Upside: Gain funds and validate market interest simultaneously. ❌ Downside: Crowded cap table may deter future investors. 4. Grants → Non-dilutive funding from government or organizations. ✅ Upside: Free money—no equity loss, no repayments. ❌ Downside: Time-consuming applications with strict eligibility criteria. 5. Bootstrapping → Using your own business revenue to grow. ✅ Upside: Full control, no investor pressure, grow at your own pace. ❌ Downside: Potentially slower growth if cash flow is limited. Tip: Hybrid approaches often work best. Align your funding strategy with your long-term vision and current traction. Remember: Each path has trade-offs. Choose wisely. __ How would you fuel your next big idea? __ 🔁Share with a founder who might benefit from exploring alternatives to VC funding. 📌Follow me, Mariya, for more insights from the startup trenches.

The Financing Gap in Tourism: A Story of Resilience and Revival For Mr. Ajay Pahuja (name changed), owning a boutique hotel in Rajasthan was a lifelong dream. Nestled in the heart of a historic city, his property promised an authentic experience to travelers. But when the pandemic hit, bookings plummeted. Revenue dried up, but expenses—staff salaries, maintenance, and loans—kept piling up. “I’ve poured my heart into this place. Watching it crumble felt like losing a part of myself,” he shared during a call. Banks weren’t willing to step in. The terms were rigid, and the waiting period too long. Investors? They wanted ownership stakes he couldn’t afford to give away. That’s when Monei Matters entered the picture. The Problem: Financing Gaps in Tourism and Hospitality The tourism and hospitality sector contributes 7% to India’s GDP and employs over 43 million people. Yet, businesses in this sector face severe financing challenges: Seasonal Revenue Fluctuations: Off-peak seasons and unexpected crises like the pandemic create cash flow issues. High Fixed Costs: Salaries, maintenance, and utilities must be paid regardless of occupancy. Limited Funding Options: Many lenders hesitate to fund hospitality businesses due to perceived risks. The result? Even the most promising ventures face uncertainty when times get tough. A Solution That Works: Tailored Financing When Mr. Pahuja partnered with Monei Matters, we didn’t just provide funding—we crafted a solution tailored to his business’s unique needs. ✅ Hospitality-Specific Financing: Understanding the sector’s seasonal nature, we structured a funding package aligned with his peak and off-peak revenue cycles. ✅ Last-Mile Support: We injected ₹10 crores to cover overdue expenses and relaunch marketing campaigns to attract guests. ✅ Flexible Terms: Unlike rigid loans, our financing terms allowed him to focus on growing his business without undue stress. The result? Mr. Pahuja’s boutique hotel is now thriving, with occupancy back to 80% and his team fully employed. Our Decade of Impact in Tourism Financing Over the last 10 years, we’ve helped 20+ tourism and hospitality ventures bounce back, grow, and thrive: Structured financing for heritage hotels across Rajasthan. Turnaround funding for a 5-star resort in Kerala facing an NPA crisis. Expansion loans for luxury hotels in Goa, enabling them to add 200+ rooms. Our mission is simple: to ensure that dreams built on hard work don’t falter due to financial gaps. Curious About How We Can Help You? The tourism and hospitality industry is resilient but needs the right financial tools to weather storms and seize opportunities. 📞 Call us at +91-9313803227 📧 Email: pradeepg19@gmail.com 🔑 Let’s craft a solution as unique as your business. What’s the biggest challenge you’ve faced in hospitality financing? Share your story or DM us to explore how we can help.

The future of AI and national competitiveness hinge on a staggering $7+ trillion investment in digital infrastructure by 2030. That’s just to meet existing demand growth (McKinsey estimates). The challenge isn't just what to build, but how to strategically finance these massive, long-term fiber network deployments in today's volatile financial climate. Fiber networks will be the highways of the AI era, lasting for decades yet demanding significant upfront capital. Traditional financing models alone simply won't scale to meet this unprecedented demand. A few examples include: • Asset-Backed Securitization (ABS): Until recently, ABS wasn’t seen as a practical option for fiber financing. Frontier helped change that. With our August 2023 fiber securitization offering, we were the first publicly traded company in the US to scale financing backed by fiber assets, catalyzing market depth and maturity. In 2025, ABS spreads have tightened to within 20 basis points of Secured Overnight Financing Rate (SOFR)—down from more than 200 in 2022. Read our CFO, Scott Beasley's insights on this (link in comments). • Joint Venture (JV) structures: While more complex to set up, JVs offer crucial capital flexibility. They allow companies to share risk and tailor financing to specific markets or builds. A key strategic alternative pursued by Frontier was a fiber build joint venture mirroring the successful JV models commonplace during wireless’ consolidation and tower infrastructure’s growth phases. Consider also AT&T’s Gigapower JV and T-Mobile's Lumos and MetroNet JVs which have followed a similar playbook. • Structured equity instruments: Bespoke preferred structures – like PIPEs (Private Investment in Public Equity) or hybrid securities – are becoming a popular, low-complexity way to fund fiber. Their hybrid features and flexible design help manage future ownership dilution and debt levels. At Frontier Internet, we’ve been at the forefront of financing innovation to unlock capital for building tomorrow’s infrastructure. For fellow leaders in digital infrastructure, what are the most significant hurdles you're facing in securing long-term patient capital today – and which of these innovative financing models do you believe holds the most promise for scaling infrastructure? See comments for link to McKinsey study and Scott Beasley article.

🌉📈 Mezzanine and Bridge Financing: Unlocking Growth in Uncertain Times 🌉📈 In times of economic uncertainty and rising interest rates, businesses need innovative solutions to secure the capital necessary for growth. That's where mezzanine and bridge lending step in, offering attractive alternatives to traditional financing options. 1. Mezzanine Financing, often referred to as a "bridge to growth," combines elements of debt and equity financing. It serves as a vital link between senior debt and equity, providing businesses with the additional capital needed to fuel their expansion plans. Unlike traditional lenders, mezzanine lenders offer flexible terms, higher loan-to-value ratios, and longer repayment periods, ensuring businesses can access the funds they require even when traditional avenues become limited. While mezzanine financing comes with higher interest rates, the benefits could potentially outweigh the costs. Mezzanine lenders have the opportunity to "share in the upside" of a borrower's growth by taking collateral in the form of equity participation. This unique advantage aligns the lender's interests with the borrower's success, fostering a mutually beneficial partnership. 2. Similarly, Bridge Financing offers quick and temporary relief for businesses in need of immediate funding. These short-term financing solutions bridge the gap between urgent financial requirements and long-term financing arrangements. Bridge loans are particularly useful in time-sensitive transactions, such as real estate acquisitions or business acquisitions and expansions, or restructuring business operations under strict timelines, where traditional financing may not be readily available due to tight deadlines to meet sponsor or seller expectations to evidence pay-out. During periods of economic uncertainty, bridge financing becomes an attractive alternative because it focuses less on the borrower's long-term creditworthiness and more on the underlying collateral and short-term cash flow. This enables borrowers to secure capital quickly and efficiently, seizing opportunities without the delays associated with traditional loan financings. While both mezzanine and bridge financing carry risks, the flexibility they provide is invaluable in navigating uncertain financial landscapes. As inflation persists, interest rates remain elevated, and job growth remains sluggish, these alternative financing options are expected to thrive in the next 12-18 months. These alternative financing options unlock growth opportunities, facilitate acquisitions and restructurings, and provide quick relief when traditional lenders exercise caution. #mezzaninefinance #bridgeloans #bridgefinance #restructuring #acquisitions #leveragedfinance #debtrestructure #corporatefinance #debtcapitalmarkets

One of the top themes of this #NHC workshop has been alternatives to federal financing for mitigation projects. It seems clear that it is time for us to broaden our perspective on how we can find sustainable financing for resilience solutions. The good news is that many of these are already practiced worldwide and in the US. Will keep it high level for this post. Tax Increment Financing (TIF) - This has been talked about a lot and is used often - though often with poorly performing stadium projects. The thing about mitigation projects is that they can directly increase property values by reducing risk. The benefit of this reduced risk can immediately flow to those who are protected and a portion of that value captured via incremental increases in property values. Land Value Capture - In areas with large amounts of vacant, underutilized, and publicly owned land, the government can use that land as leverage to pay for bonds to construct resilience improvements (e.g., floodwalls or other protective measures). As resilience improvements boost land values, they can sell the land and capture the appreciated values to pay the bond, while also encouraging redevelopment. Special Assessment Districts - Property owners who directly benefit from resilience projects (like levees or stormwater systems) contribute through special assessments based on the protection they receive. General Obligation & Revenue Bonds - Leverage municipal credit ratings for long-term, low-cost financing. Revenue bonds can be backed by utility fees, development impact fees, or other dedicated revenue streams. Green Bonds - Tap into the growing sustainable finance market with bonds specifically earmarked for environmental and resilience projects, often attracting lower interest rates from ESG-focused investors. Concessional Financing - Access below-market-rate loans from development finance institutions, green banks, or impact investors who prioritize resilience outcomes over maximum returns. Hybrid Public-Private Financing - Combine remaining FEMA funds with private investment to stretch federal dollars further while bringing in private sector expertise and efficiency. Design-Build-Finance-Operate (DBFO) - Transfer project risks to private partners who handle design, construction, financing, and long-term operation in exchange for revenue sharing or availability payments. Resilience Service Agreements - Private partners finance and maintain resilience infrastructure in exchange for long-term service payments, similar to solar power purchase agreements. State Resilience Programs - Many states have developed their own hazard mitigation funding programs independent of federal resources. Utility Rate Mechanisms - Build resilience costs into water, electric, or gas utility rates, especially for infrastructure protection projects. #DisasterResilience #MunicipalFinance #ClimateAdaptation #PublicPrivatePartnership #HazardMitigation

6 alternative fundraising options for startups besides VC, PE, bank lending, and factoring: 1. Revenue-based financing (RBF) RBF is a way to get funding by sharing a part of your future revenue. It's good for startups with steady income (like SaaS or subscription-based businesses). Some companies that offer this include Clearco, Booste, Capchase, Flow Capital, Lighter Capital, and Wayflyer. 2. Equity crowdfunding You can raise money from lots of individual investors through online platforms like Kickstarter, Wefunder, Fundable, and Indiegogo. It's great if your startup has a special appeal. 3. Accelerators and incubators These programs provide mentorship, resources, and networking opportunities. Some even offer funding. Check out programs like 500 Startups, Y Combinator, Techstars, AngelList, and the Founder Institute. 4. Working capital loans These loans help cover your day-to-day expenses. They're handy for fast-growing startups or those with short inventory cycles. Look into lenders like OnDeck, Kabbage from American Express, Lendio, Fundbox, and Bluevine. 5. Equipment financing If you need equipment but can't pay for it all upfront, equipment financing is a good choice. Companies like Balboa Capital, Crest Capital, First American Equipment Finance, Fundbox, and Lendio can help. 6. Government funding programs Consider these options: SBA Express Loan: Quick loans up to $500,000 for various business needs. SBA Microloan: Loans up to $50,000 for startup and expansion costs. SBA 7(a) Loan: Popular loans up to $5 million for different purposes. Grants: Look for government and private grants for innovative or socially impactful projects. LMK If you need more advice, I hope this helps you on your financing journey!

Welcome to the second edition of our four-part series diving deep into early-stage business funding. Thanks for all the great feedback last week. This week, we're exploring Non-Dilutive and Debt Financing. Non-dilutive funding, especially R&D grants, government programs, and innovative debt options, can be transformative, preserving your ownership and significantly enhancing valuation. In this newsletter I look at: R&D Grants: A deep dive into opportunities like Innovate UK Smart Grants and the U.S. SBIR/STTR programs, highlighting how these grants validate your technology and increase valuations by 15-30%. Traditional Debt Financing: Discover how UK startups leverage British Business Bank guarantees and U.S. founders use SBA loans to strategically extend their runway without dilution. Invoice and Revenue-Based Financing: Flexible, scalable solutions ideal for managing working capital, maintaining equity, and aligning payments with your growth. The goal is to help you understand how to strategically combine various non-equity funding mechanisms to accelerate your startup's growth while maximising founder control. Check out the full newsletter 👇 Stay tuned for next week's instalment on Equity Financing..... #StartupFunding #NonDilutiveFunding #DebtFinancing #Grants #StartupGrowth #FounderAdvice #IdeasforaBetterWorld

Are you a start-up struggling to close venture capital funding? What if I told you there’s more than one way to fuel your startup’s growth without giving up a chunk of your equity or waiting for a VC to give you a shot? Let’s break it down: 1️⃣ Bootstrapping: Sara Blakely turned $5,000 into a billion-dollar empire with Spanx—all without external funding. The lesson? Sometimes, holding onto control and growing at your own pace can be the smartest move you make. 2️⃣ Crowdfunding Remember Oculus? Before it was snapped up by Facebook for $2 billion, it raised $2.4 million on Kickstarter, proving that a strong community can be your most powerful investor. 3️⃣ Revenue-Based Financing Spotify played the long game with convertible debt, securing capital while keeping equity intact. If your startup is generating steady revenue, this route could be a perfect fit. 4️⃣ Blockchain Innovations Ethereum didn’t just build a platform—it pioneered the ICO model, raising $18 million in 2014. Today, it’s the backbone of decentralized finance. If you’re in the blockchain space, ICOs might be worth considering. 5️⃣ Direct Public Offerings Ben & Jerry’s took their community love to the next level by allowing local Vermonters to invest directly in the company, securing funds and building loyalty at the same time. Sometimes, your best investors are right in your backyard. The key takeaway? There’s no one-size-fits-all when it comes to funding your startup. Whether you’re bootstrapping, crowdfunding, or tapping into new frontiers like blockchain, the path you choose should align with your vision and values. Founders, here’s your challenge: Don’t just follow the crowd. Explore the options, weigh the pros and cons, and find the funding strategy that’s right for your business. Read this week's edition of The Cap Table Newsletter to dive deeper into these alternative fundraising strategies and find out which one might be right for you! #startups #venturecapital #fundraising #entrepreneurship #innovation ____ Enjoy this? Follow Elana Gold for venture capital, angel investing, and startup insights

About 80% of the business leaders I talk to who think they need capital really don’t. Instead, they need cash flow. This is especially true for small or medium business poised for hypergrowth. Lengthy cash-to-order cycles hamper many of these businesses. If you’re waiting 60, 90, 180 days or more for payment, your company lacks the money to buy the inputs to fulfill big orders and fund operations. In my mind, supply chain financing is the perfect rescue tool. This powerful option unlocks cash flow without adding debt or diluting equity through a capital raise. My latest blog explains how supply chain financing: ·      Adds liquidity to drive growth, almost like adding lines of credit. ·      Avoids surrendering equity to VCs, PEs or angel investors. ·      Gains leverage in negotiating better payment terms with customers But all supply chain financing options are not equal. The right one helps your company achieve scale and enter the global supply chain nearly immediately after joining the platform. Don't let immediate financial challenges hamper your SME's future or your current balance sheet. Read the full blog to discover the right way to position your business for long-term success while keeping you in control:  https://lnkd.in/ey9XGudv #supplychainfinance #alternativeraisingcapital #nondebtequity #supplychainfinancing #privatecapitalalternative

$22.5 billion in seller-financed deals were closed in 2022 💰 With interest rates in the 8’s, it’s natural that alternative financing options are being explored by buyers and sellers. The decision to embrace seller financing depends on various factors, including the property type and the financial situation of both parties involved. But if you’re considering the option, or are trying to learn more – here’s how I see the benefits and pitfalls: 👍 Advantageous rates for buyers (lower than any bank will give right now) 👍 Faster closing time (circumventing the traditional mortgage delays) 👍 Flexibility in terms for sellers, creating a more personalized agreement 👍 Sellers can actually sell in this difficult market – with the security of still having their property if the buyer defaults. On the other hand: 👎 There’s always risk exposure for sellers by acting as the lender 👎 Lower sale price compared to a traditional sale 👎 Requires a well-versed real estate attorney familiar with these deals 👎 Interest income tax implications for sellers which require professional advice It’s not a one-size-fits-all solution. But it can be valuable in the right circumstances. Understanding the nuances of these strategies is key to making informed decisions! If you're considering seller financing or curious about alternative approaches in the current market, let's chat. #realestate #sellerfinancing #propertyfinancing #brokerage