SBA startup loans, quarterly board decks, bootstrappers’ delight – TechCrunch

Happy August! Or as many of my neighbors like to say: Happy Fog.

San Francisco sits on a peninsula surrounded by cool water. So when warm summer air rushes in, dense fog shrouds the landscape. On some days the ceiling is so thick that visibility is only a few hundred meters.

It’s an apt metaphor for the uncertainty plaguing tech companies as we hear about layoffs, lower valuations, and more discussion about dry powder than I’ve heard in many years.

A bright light amidst the darkness: Startups that generate enough revenue to fuel steady growth will find plenty of investors willing to take their calls.

A bright light amidst the darkness: Startups that generate enough revenue to fuel steady growth will find plenty of investors willing to take their calls.

“If you’re a bootstrap company that’s not on the treadmill yet, you have that kind of option or ability to choose when you step in,” says Cavan Klinsky, co-founder of payment processor Healthie.

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“Once you’ve already built a number of ventures, you’re building a venture-scale company, whereas when you have bootstrap you can be really opportunistic, which is the right time,” he told Natasha Mascarenhas.

Still, she surveyed founders at a handful of bootstrap startups, noting that “even if they don’t want to,” some “may choose venture capital to get to the next level of revenue” or stay the course.

Inflation and competition with crypto salaries are just two factors driving up costs, leading many self-sufficient founders to reconsider going it alone.

“For a lot of bootstrap companies, they’re not out there raising funds,” said Saud Siddiqui, CEO and co-founder of Sketchy.

“Often investors come up to them, so it depends on the climate, and if people don’t invest, they might just keep chugging along.”

Thank you for reading this week’s TC+.

Walter Thompson
Editor-in-Chief, TechCrunch+

5 tips to scale your green startup during a funding drought

Horizontal side view of a lone yellow flower growing on dried cracked ground; Fundraising for the green startup downturn

Photo credit: fly parade (opens in a new window) /Getty Images

Not being a great gardener, I have chosen houseplants that are tolerant of my forgetfulness about water and fertilizer.

However, startups trying to create scalable solutions to the slowly unfolding climate catastrophe are not as resilient.

These companies often have lengthy, sizeable fundraising rounds and year-long product development deadlines, which means they’re particularly vulnerable to external market forces.

Priyanka Srinivas, co-founder and CEO of food tech startup Live Green Co. shared her advice for entrepreneurs focused on climate and sustainability:

“When your business activities have produced the desired results and repeatable cycles – like developing a new product and selling it to local markets – then you are ready to multiply.”

US startups seeking funding should not overlook government funding

SBA, startups, loans

Photo credit: CreativaImages (opens in a new window) /Getty Images

I know people who have worked with the US Small Business Administration (SBA) to find funding for a food truck, bakery, and clothing store, but I don’t know of any startup founders who have used this federal program to grow their businesses.

Eligible startups can purchase up to $5 million in government-guaranteed loans that will be repaid over a decade, reports Rebecca Szkutak. This is real money.

“The problem is that business owners often overlook leverage that is fairly readily available,” said Chris Hurn, CEO and founder of Fountainhead.

“You don’t have to give up any equity. [SBA loans] can often be just the stepping stone they need to get to the next level.”

Beyond Volatility: How Semiconductor Companies Can Succeed with a Focused Sector Strategy

Factory producing microchips

Photo credit: Bill Varie (opens in a new window) /Getty Images

Despite chip shortages slowing production for everything from televisions to farm tractors, semiconductor sales rocketed to $600 billion in 2021.

According to McKinsey partners Ondrej Burkacky and Nikolaus Lehmann, to stay afloat in the coming years, semiconductor manufacturers should rely on technologies that drive other industries, such as AI/ML, digital services and micro-mobility.

“From a demand perspective, we project that 70% of growth through 2030 will be driven by just three industries: automotive, computing and data storage, and wireless […] By thoroughly analyzing their resources and capabilities, the task for decision makers when ramping up capacity is to tailor their capabilities to the most promising segments.”

Build a solid deck for your quarterly board meetings

Conceptual still life of low risk and rising; build a deck for board meetings

Photo credit: Hiroshi Watanabe (opens in a new window) /Getty Images

Board meetings are crucial for getting feedback on your progress to date and your plans for the future, but what’s the best way to present the full picture to board members?

According to Ridge Ventures partner Yousuf Khan, founders should “just ask” investors what kind of details and metrics make quarterly decks optimally valuable.

“Reaching out to your board of directors not only gives you direction, but also builds a relationship,” he says. “People appreciate the opportunity to get involved.”

In this TC+ post, he shares seven tips for creating a presentation that updates board members on progress, plans, product pipeline, and finances. SBA startup loans, quarterly board decks, bootstrappers’ delight – TechCrunch

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