A Scarcity of Funding Options for Small Companies

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Funding Options

Revenue Share

Features & Benefits

Management

Experience

Investors (private)

•	Personal contributions and “friends & family” fall short of need.
•	Banks usually demand significant collateral and impose undesirable covenants.
•	Factoring companies look for significant levels of high-quality receivables.
•	Many merchant cash advance firms have short-term payback requirements, thereby requiring companies to dedicate a high percentage of their cash collections to those paybacks.
•	VCs and private equity firms usually 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.