For many tech founders, equity has long been the default fuel for growth. But funding models evolve, just like the innovative businesses they support.
Today, more founders are exploring non-dilutive alternatives for growth. Debt, once seen as too rigid or too risky for high-growth tech, is being reimagined.
Most tech businesses do not follow traditional business models. They front-load costs, invest heavily in product, people, and customer acquisition, and typically operate with deferred revenue. It is a model built for scale, not steady-state profits.
This creates cashflow volatility that traditional lenders often shy away from. But it also creates opportunity.
Many of these businesses generate predictable recurring revenue, boast strong customer retention, and hold valuable IP — all of which can be indicators of creditworthiness, even if EBITDA is still negative....