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Start with Why – How to Finance Technology Startups

Start with Why – How to Finance Technology Startups
In this article



“Hello World!” and welcome to the blog.

I love tech startups. How they work, how they scale, and especially how they are financed.

I’ve met with and analyzed financial statements for hundreds of technology startups. Each meeting I learn something new and get to discuss financing options available to tech companies. I’ve started this blog to share these discussions (and debates) with as many people as possible. Here is a bit more about me.

My goal for this site is to simplify complex financial concepts to:

  • Help founders to assess options and access financing
  • Support financial partners working with tech startups
  • Prepare a candidate for an interview to move into tech finance

To Support Founders

When it comes to tech startups, it’s not uncommon that a CFO is hired when the company is at 10+ employees, or even later. This means a lot of the heavy lifting related to the finances is often done by the founders. While most founders are already exceptional in their field and at building their product, a lot of their financial knowledge has to be learned along the way. I want to help simplify these concepts and improve access to knowledge for founders.

To Support Financial Partners

When I talk to colleagues in banking, accounting or students that want to enter the field, I find that (unless they have specialized in technology and startup finance) there is a gap of knowledge around how startups are financed. This is especially true from a debt (lending) perspective.

Tech startups don’t follow the rules and patterns of traditional businesses, so applying the same metrics to them just doesn’t work. Common financial metrics like EBITDA, Debt-Servicing and Leverage, shift to Burn, Churn, MRR and CAC/LTV for analysis. As this knowledge becomes more common, financing startups will become easier – I want to help with this too.

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