Bridge fund investment firms Prestige Capital – Harvey L. Kaminski, Boundary Holding – Rajat Khare, and STC Capital – Christopher Woelffer talk about the lexicon and what it means in the funding environment
Entrepreneurs, wantrepreneurs, startups, investors have probably heard and known about the investors’‘ lingo’ of funding. Proclaimed quite explicitly as the ‘food’ for any startup, the right kind of funding can make or break it for you, in the long haul.
As for bridge funding, while many have been still grappling with the investment idea, empires have been already built and thrived.
We see the modern makeup of startups run by the claims of the establishment of right funding and resources, and error-proof empirical methods of attaining success. While their essentiality cannot be questioned, the initial frugality is the key.
The initial push or mid-series pump to help you strengthen your market presence— Bridge Fund will give you just what you need to make it your funding stages.
To lift the fog from the shewed picture of bridge funding, let us take an example of a startup that wants to raise $500,000 in round A funding, but somehow you fall short of the fuel to drive operations and need another $500,000. With round B funding expected to raise $2,000,000 for you, one could opt for a bridge loan of $500,000 until the round B funding is complete.
Here, not only acting as a pre-seed investment, bridge funds help you in the mid-series crisis, bridge to push it through the threshold to larger investments, improving its market image as it works to attract another investor.
Talking about the funding and startup scape, we’ve deeply entered into intellectual and empirical waters and evaluated three bridge funding investment firms, Prestige Capital – Harvey L. Kaminski, Boundary Holding – Rajat Khare, and STC Capital – Christopher Woelffer, who tell us why and how can bridge financing be the big bang for a startup?
“We specialize in factoring for early Stage and Mid-Size companies. Simply put, we purchase invoices from a broad spectrum of businesses whose accounts receivable seem impressive in the long run”, says Harvey L. Kaminski.
Talking about how to bridge fund helps reap the benefits of flexibility, Rajat Khare, the founder of Boundary Holding says, “Even in scenarios where the company hasn’t yet attracted its first investor, bridge funds can often provide sufficient funding to help a startup’s work begins to resonate in the capital market. It is highly creditworthy, providing the critical assurance that draws the attention of seed, angel and other large-scale investors.”
“We see tremendous benefits in partnering with organizations that are similarly-minded in their philosophy by offering them financial capabilities to support further expansion,” Christopher D. Woelffer, STC’s President talks about forming a strategic partnership with start-ups.
However, one might not deny that a crucial factor in the process of seeking funding is the strategic selection of parties having the same vision regarding the startup’s technology and business model, and its intended uses, growth prospects and future plans.