A Scarcity of Funding Options for Small Companies

 

 

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Funding Options

Revenue Share

Benefits

Management

Experience

 

Personal contributions and “friends & family” fall short of need.

 

 

Banks usually demand significant collateral and impose undesirable covenants.

 

 

Many factoring and merchant cash advance firms offer amounts of capital based only upon existing accounts receivable, limiting a company’s ability to obtain sufficient capital for growth initiatives.

 

 

VCs and private equity firms may press companies for low pre-money valuations and often demand other onerous terms.

 

 

The financing requirements of the companies targeted by Seaside are generally too small to be of interest to firms managing massive pools of capital.