What are your options for fundraising beyond equity raises?
DFW CPG explored that question with a panel in Dallas. All these options are NON-DILUTIVE (does not require selling any of your company).
1️⃣ Grants can be time-consuming to secure, with the need for connections and advice on the application process, but PlantSwitch won $5M! We were told not to try to search for these on Google (you'll likely find 1% of what's available), but to reach out to your network to find others who have successfully won the type of grants you'd seek.
2️⃣ Prizes require a polished pitch to win (with a solid business plan, succinct planned allocation of funds, and insightful description of your customers). Find these opportunities with pitch slams and even TV shows, like Bet on Black, where The Guilty Grape won a cash prize with the help of Power To Pitch.
3️⃣ Creative financing, like Kickfurther for inventory, doesn't even show up on your balance sheet, because the lender owns the inventory until you are ready for it. Terms vary, and can be higher than traditional debt, but is easier to secure.
4️⃣ Crowdfunding like Kickstarter (where you can get pre-orders to fund an idea) or Honeycomb Credit (which is usually debt-based) are great options as well. Do not underestimate the effort that will go into marketing and preparing for a successful fundraise on these platforms.
Consider you will likely need two years of tax returns before going most of these routes (Kickstarter excluded).
Thanks to Kat Weaver for moderating the panel and to Nichelle Nichols, Nicole Nichols, and Michael O'Keefe for all the wisdom they shared. Big thanks to DFW CPG for organizing - it was great to meet so many of you and I look forward to connecting more in the future!
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