How to Secure Funding in Challenging Markets

If you run a $50M+ revenue business in today’s market (what one would consider middle market), you might have noticed: 🔹 There’s still capital out there. 🔹But getting it approved and funded? That’s where deals keep stalling. 3 of the usual friction points we see that derail otherwise strong lending opportunities: 1️⃣ Tighter Credit Boxes – Lenders are laser-focused on industry risk, debt service coverage, and liquidity. Even businesses with solid historical performance are facing extra scrutiny if they’re in sectors with recent volatility. 2️⃣ Collateral Valuations Lagging Reality – Real estate and equipment appraisals aren’t always keeping up with market shifts, meaning borrowers are coming up short on loan-to-value requirements. 3️⃣ Documentation Fatigue – Medium-sized businesses often have more complex financials than small firms, but without the in-house finance departments of large corporations. That means the back-and-forth for clean, lender-ready financials is slowing deals by weeks—or killing them outright. ➢ The lenders who are getting deals done are adapting—offering creative structures and putting a premium on speed and transparency. If you’re in the hunt for growth capital right now: ➔ Get your financial package “audit ready” before going to market. ➔ Be open to blended financing solutions. ➔ Work with partners who understand both the lending climate and your business model. ✦ Rates might move, markets might shift—but well-prepared businesses with the right team can still secure the capital they need to grow.

Refinance with Purpose: Capital Strategy as Core Supply Chain Intelligence The trade war just reignited - again - yet, Supply Chainers tend to forget - markets tanked, recession risks spiked, and volatility returned with force. Dow Jones dropped 4,000 points in 48 hours. Nikkei fell 8%. Goldman Sachs raised U.S. recession odds to 45%. Let's stop glorifying the challenge and focus on the amazing opportunity in crisis. My next research article: "In Chaos We Create" is in the making. Meanwhile - keep calm and be smart. 💰 Financial clarity is now operational power. 💪 Recessions historically drive borrowing costs down. In 2008 and 2020, central banks cut rates swiftly. Today, 10-year Treasury yields sit at 4.2%—up 18 basis points despite rising geopolitical tension. The window for refinancing is open but narrowing fast. At the same time, supply chains are exposed—again. From rare earths to ag trade, the fragility is real. Capital discipline is a competitive differentiator for supply chains - not sweatshops. Signals for Smart Enterprise to take action: 🔹 Refinance Debt Intelligently Secure capital early. Liquidity tightens fast with volatile demand. Timing defines advantage and Cash is King. Always. 🔹 Build Financial Architecture into Supply Chains Use capital strategy to fund diversification, redundancy, and agility. Using your Cash Account to Finance your Mitigation and Inventory Plays are the worst decision you can make. Financial strength powers operational performance. 🔹 Secure Multi-Layered Optionality Reinforce access across sourcing, funding, freight, and distribution. Optionality equals resilience. 🔹 Monitor Central Bank Shifts The Fed will move if recession pressures mount. Preparedness sets the cost baseline. If you stay liquid when others don't you can operate - and set into growth when others leave the market. This is the moment for decisive repositioning. Plan now, act swiftly. CSCOs shouldn't leave it to the CFOs. They don't know supply chains, and most often than not, they don't know economics. 🔥 Refinancing and capital deployment now will define who leads in the next cycle. Capital strategy is operational leverage. 🧨 #GeoEconomics #RefinanceWithPurpose #SupplyChainFinance #StrategicLiquidity #ResilienceByDesign

𝐅𝐮𝐧𝐝𝐫𝐚𝐢𝐬𝐢𝐧𝐠 𝐢𝐧 𝟐𝟎𝟐𝟒 𝐢𝐬 𝐭𝐨𝐮𝐠𝐡𝐞𝐫 𝐭𝐡𝐚𝐧 𝐞𝐯𝐞𝐫, 𝐚𝐧𝐝 𝐡𝐞𝐫𝐞’𝐬 𝐰𝐡𝐲... Yet, I’ve seen teams not just survive, but thrive when they turn these challenges into opportunities. - 5 hard truths about fundraising in 2024: 1/ Venture capital is shrinking ↳ VC funding is down 33.6% compared to last year. ↳ Startups are competing harder for less money. 2/ Fundraising takes longer ↳ It now takes 17.4 months to close a VC fund. ↳ Founders need to prepare for a long grind and extended negotiations. 3/ Fewer funds, tougher competition ↳ Only 1,670 VC funds have closed this year, down 40%. ↳ Securing funding now requires more effort and sharper pitches. 4/ North America is slowing, Europe is booming ↳ Europe’s fundraising surged 26.9% while North America dropped 17%. ↳ Geography can play a huge role in your fundraising success. 5/ Big funds dominate ↳ Over 50% of new capital came from just 12 megafunds. ↳ Startups need to be realistic—big funds are chasing experienced managers. But here’s the thing: every challenge in fundraising is an opportunity to get creative, be relentless, and grow stronger. I’ve seen teams rise above these obstacles with persistence and strategy. It’s not about the hand you’re dealt—it’s how you play it. - Here is how I've seen teams overcome these challenges: 1/ Pivot early, pivot smart ↳ Teams that align with growing sectors like sustainability or infrastructure are securing funding faster. ↳ Pivot towards sectors that are drawing capital—secondaries are up 66.4%. 2/ Build relationships before you need them ↳ Start conversations with investors early—way before you need the money. ↳ Founders who nurture relationships for months (or years) close faster. 3/ Focus on niche investors ↳ Instead of chasing megafunds, startups that target smaller, specialized funds often win. ↳ Investors in niche markets are hungry for the right opportunity. 4/ Leverage Europe’s momentum ↳ If you can target European investors or have operations there, you have an edge. ↳ Don’t limit yourself to local capital. 5/ Resilience wins ↳ the teams that push through the challenges, stay adaptable, and stay patient are the ones that succeed. ↳ Longer timelines aren’t a roadblock—they’re part of the process. Looking ahead to 2025, experts forecast a gradual recovery. With inflation stabilizing and interest rates easing, capital flows could start unlocking again. For startups, that means staying lean, staying visible, and being ready to seize opportunities as the market rebounds. Prepare today, because the tide will turn in your favor! Fundraising isn’t about immediate wins—it’s about building long-term partnerships. You’re closer to success than you think. ♻️ Repost and follow Leon Eisen, PhD - Founder, VC, Fundraising Coach for daily fundraising, entrepreneurship and VC insights.    Ring the 🔔 on my profile.

99% of businesses fail because they run out of cash. Yet, most founders chase funding the wrong way, pitching too early, taking bad deals, or relying on hope instead of strategy. If you need funding, here’s how to actually secure it (without wrecking your business) 1️/ Know Your Funding Options Different businesses need different capital sources. Consider: - Bootstrapping (self-funding, best for control & lean startups) - Bank Loans (SBA, term loans, lines of credit) - Investors (VCs, angel investors, private equity) - Revenue-based Financing (funding based on sales) - Grants (free money, but competitive) 2️/ Get Your Financials in Order No investor or lender funds chaos. You’ll need: - A solid business plan - Cash flow projections (Can you pay them back?) - Profit & Loss statements (show financial health) - Collateral (for secured loans) 3️/ Leverage SBA & Bank Loans Banks love businesses with: - Strong financial history - Profitable operations - Clear repayment ability SBA loans can be easier to secure for small business owners (10-20% down needed). 4️/ Pitch to Investors the Right Way If going the VC or angel route: - Show market opportunity (Is it big enough?) - Have traction (Revenue? Users? Growth?) - Prove why you (Your expertise + execution plan) - Be clear on what’s in it for them (ROI, exit plan) 5️/ Explore Alternative Financing - Revenue-based financing (funds based on sales) - Factoring (sell invoices for upfront cash) - Crowdfunding (public backing, pre-sales) 6️/ Build Relationships with Lenders & Investors Funding is about trust. Start networking before you need the money. 7️/ Don’t Just Take Any Money Funding comes with terms & trade-offs. - Debt = repayment risk - Equity = giving up control - Alternative financing = high fees The key? Pick the right funding for your stage & strategy. What’s been your best (or worst) funding experience? #funding #SMB #finance #business