Continuum of Capital Growing a young company requires capital. Ideally, revenues are initially and continually generated through sales. For some businesses, though, the cost of start-up outweighs initial revenues; even though future revenue opportunity is significant, it may take three to five years to realize it. For tech businesses, which have to move at warp speed, the window of opportunity for market
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entry and profitability is especially tight, demanding such rapid execution that bootstrapping is almost impossible. For companies in this situation, it’s necessary to engage in a continuum of funding sources to catalyze rapid and sustainable growth. Understanding where a business venture fits into the continuum of capital is critical. It’s all about the right capital at the right stage of development.