Beverly Hills, Jan. 24, 2022 (GLOBE NEWSWIRE) — With many funding options now available, startups have more flexibility than ever when it comes to raising capital for their business. While traditional funding avenues like venture capital are more active than ever, we are also seeing the emergence of more alternative funding options.
In this episode of The BARE Ventures podcast, Samir Vig interviews Nick Dolik, Senior Vice President, Venture Banking Group at Signature Bank. Here to showcase what Signature Bank has to offer and details on the alternative finance landscape, Dolik is passionate about being part of startups.
Listen to the chat between host Samir Vig and Nick Dolik here
How Nick Dolik started
Introduced to business from an early age, Nick Dolik comes from a line of entrepreneurs. “I watched my dad grow a tech business out of our basement,” he shares. It fueled the leader in him. After leaving Michigan to pursue a career in finance, his move to New York opened the doors to the offices of Goldman Sachs, one of the five largest banks in the country. Moving on to venture debt and startups, Dolik now lives to provide capital to startup executives.
“I want to help start-ups with capital for the rest of my life,” Dolik told the BARE Ventures podcast.
Signature Bank’s venture banking group
Dolik describes that Signature Bank prioritizes a relationship between them and the startup. As a “helpful partner in the ecosystem” who constantly monitors progress, Dolik highlighted the main difference between them and other vendors.
“We actually manage our portfolios,” says Dolik.
Although selective, the portfolio of quality startups that Dolik says it considers are those that are backed by venture capital. This is actually the key to eligibility.
“We’re not trying to replace VC, we’re actually closely aligned with VC,” says Dolik. “We compliment them.”
Alternative funding options for startups
There are great alternatives to term loans and lines of credit. However, it is important to consider the structure and operation of a startup, as one option may be a better fit than another. To elaborate, some startups may simply not be eligible for specific funding options, such as factoring, depending on how they operate.
Outside of venture capital, Dolik reviews alternative forms of financing, including: senior secured loans, revenue-based financing, and non-dilutive capital.
Dolik presents unique points describing what Signature Bank offers to startups that are attractive. Signature offers one of the cheapest forms of debt and is very competitive in the market.
The future of financing
“Entrepreneurs now realize that they can raise funds without giving up 20% of their business each time they raise funds,” Dolik points out to start.
Vig brings up the topic of the funding horizon, where we are headed and invites Dolik to give his perspective and judgment. Like other experts, Dolik is optimistic about the progress of market growth, in addition to technology as a whole.
“Covid has really pushed a lot of things that were supported and we’re seeing venture capital dollars coming into a lot of these markets,” Dolik says.
What to keep in mind
It is crucial to recognize the pros and cons of each alternative financing decision. While considering the options, consider the cheapest forms of debt first, because giving away part of a business is no longer the only way to go.
“There is no one size fits all…” says Vig.
Ultimately, the goal is to provide enough capital through a manageable and realistic plan.
Bringing together the experience of founders, operators and investors, BARE Ventures, as a company, strives to take a balanced approach to fund management. With a background in institutional investing, BARE Ventures focuses on proven traditional methodologies combined with emerging learnings in the ever-changing venture capital landscape.
Learn more at https://www.barevc.com/.
For further information: [email protected]
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Samir Vig and Nick Dolik on venture capital debt and the alternative financing landscape