When it comes to alternative financing for bootstrapped founder, Pipe is creating a unique way of funding your startup for many of the growth outcomes you aim to achieve.
Over the next year, we’re going to present a few case studies of startups and businesses that can best leverage this model of funding, how to optimize your business to secure the best funding options, and more.
This case study is in partnership with Pipe.
Where bootstrapping and financing intersect.
Alternative finance has been booming in the past few years, as innovative entrepreneurs have created new ways to access capital without dilution or restrictive loans.
Once your business is generating predictable revenue and you’re out of the pre-revenue stage, it can be a great way to capitalize your business to hire, build inventory, ramp up marketing and sales, and more.
This year, MicroConf is partnering with Pipe, a trading platform for recurring revenue that provides direct access to the capital markets, to bring alternative financing to the bootstrapped startup community.
How can founders leverage non-dilutive funding?
Accessing non-dilutive capital through Pipe is fast and flexible—designed for founders to grow their businesses on their terms, at their pace, and with a low cost of capital. After securely connecting their banking, billing and accounting software, the platform allows companies to trade their recurring revenue streams for up-front capital.
Perfect for a time-crunched bootstrapper like Bobby Dimovski.
“Pipe is my partner for growth,” said Bobby, Founder of marketing agency 4MJ Social.
He originally founded his marketing business as a side-hustle to generate extra income while he and his wife were expecting their first child.
As a first-time entrepreneur balancing two jobs, he needed capital to grow but didn’t have time to wait for the traditional financing process.
With Pipe, Dimovski was able to get a trading limit within a couple of clicks and access dilution-free growth capital without drawn-out loan applications or a pitch deck.
“I wondered ‘What’s the catch?’” says Bobby. “Pipe was the first to give me access to dilution-free capital based on the health of my business and not how long it had been up and running, or my personal credit history. I was able to grow my business without waiting for invoices to be paid. I could make the hires needed to take on more clients.”
Although 4MJ Social launched just before the onset of the COVID-19 pandemic, at a time when many business outcomes were particularly uncertain, Bobby’s company was able to grow.
The MicroConf community benefit
Pipe allows founders to grow their businesses—bootstrapped, equity-backed, and beyond—on their terms without restrictive debt or dilution. Right now, MicroConf members can access up to $50m in fee-free growth capital via Pipe with trade fees waived for the first 12 months. Visit www.pipe.com/microconf to get started.
If you are interested in hearing more about funding and financing for bootstrappers, check out this episode of Startups for the Rest of Us.
