Gartner Research

Discover 10 Nondilutive Cash Alternatives to Equity Financing as a Tech CEO

Published: 24 April 2023

Summary

Equity investment isn’t the only way for tech CEOs to make ends meet. Optimized working capital and alternative financing can address cash flow shortfalls without dilution. This research describes 10 finance sources that may be more appropriate for your company.

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Overview

Key Findings
  • Many tech companies do not maintain access to sufficient capital to fund operations, especially in uncertain economies.

  • Equity financing is a common approach for tech CEOs to raise cash. However, it can be highly dilutive to current owners.

  • Many tech CEOs are unaware of the available nondilutive options to ensure they have access to funds to continue driving growth.

Recommendations

Tech CEOs looking to leverage corporate development and growth strategies to obtain alternative financing must take these steps:

  • Optimize your company’s current capitalization structure by pursuing nondilutive cash alternatives to equity financing.

  • Preserve shareholder value by evaluating financing alternatives based on cost and

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Analysts:

Barry Glauberman

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