Rethinking SMB Growth: Why Chasing Checks Isn’t the Only Path to Success

What if the key to scaling your small business isn’t chasing elusive VC funding, but strategically hiring the right capital for your unique needs?Jonathan Bragdon of Capacity Capital and Teri Billon, founder of Ask Us, unpacked critical insights for small and medium-sized businesses (SMBs) and tech entrepreneurs navigating funding, scaling, and exit strategies. Their conversation, part of a new SMB and Tech series, revealed actionable strategies for high-growth businesses, emphasizing capital efficiency and alternative financing over traditional venture capital (VC) routes.

Key discussion points included:

• To VC or not to VC? That is the question. VC funding, while common, is often the most expensive long-term option due to equity dilution. Bragdon advocates for “hiring money” to fuel growth while maximizing ownership.

• Alternative Financing for Rapid Scaling Teri Billon shared how she’s leveraging PO financing to fulfill high-value contracts, enabling rapid scaling without equity loss.

• Opportunity Cost Over Interest Rates A big part of picking the right type of growth financing is evaluating the options based on opportunity cost and growth potential over single metrics like interest rates.

Success for SMBs and tech startups lies in choosing capital that aligns with their business model and growth goals. By leveraging options like PO financing or revenue-based models, founders can scale rapidly while maintaining control, proving that chasing checks isn’t the only path to thriving in today’s market.

Full On the Record Session below.