Jan. 20, 2025

Startup Funding - VC, Bootstrapping, or Debt? The Funding Spectrum Explained (Edu)

Are you a founder struggling to figure out how to fund your startup? With so many options available - from bootstrapping to VC funding - how do you know which path is right for you?

 

In this episode, Chris Saad and Yaniv Bernstein break down the full spectrum of startup funding sources, exploring the pros, cons, and hidden pitfalls of each approach. Whether you're considering self-funding, equity financing, or debt, you'll gain crucial insights to make an informed decision.

 

In this episode, you will:

  • Discover the key differences between revenue-based, equity, and debt financing
  • Understand the pros and cons of bootstrapping vs raising external capital
  • Learn about alternative funding sources like float and cross-subsidies
  • Gain insights into the risks of over-relying on self-funding as a founder
  • Explore strategies for allocating and deploying capital efficiently
  • Understand how different funding approaches impact your startup's growth trajectory
  • Learn how to balance frugality with bold investment in scaling your business
  • Get advice on choosing the right funding mix for your specific startup

 

The Pact

Honour The Startup Podcast Pact! If you have listened to TSP and gotten value from it, please:

 

Key links

 

Learn more about Chris and Yaniv

Work 1:1 with Chris: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠http://chrissaad.com/advisory/⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠

Follow Chris on Linkedin: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.linkedin.com/in/chrissaad/⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠

Follow Yaniv on Linkedin: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.linkedin.com/in/ybernstein/⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠

 

Credits

Editor: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Justin McArthur⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠

Content Strategist: Carolina Franco https://www.linkedin.com/in/francocarolina/

Intro Voice: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Jeremiah Owyang⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠