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Weighted Average Cost of Capital
The Most Misguided Decision Founders Make: Their Funding Structure -- The First Strike Incubator team breaks it all down on The No Followers Podcast
“Weighted Average Cost of Capital”
If you’re raising, here’s the real question: WHAT STRUCTURE IS YOUR BEST OPTION? Most founders get this wrong. Not because they’re reckless but because they’re misinformed. In this episode, the co‑hosts unpack: The real fundraising options available.-Why structure matters more than the size of the check.-How to choose HOW and WHAT DEAL to raise with.-The hidden costs founders never calculate.
Share your questions, comments, and POV with us.Follow, Subscribe, Like. Stay tuned for new media and events coming in 2026 on the In Focus Brands YouTube Channel.NO FOLLOWERS Podcast Video Episode 36. Weighted Average Cost of Capital.The best way to raise money is to sell something.** Debt is cheaper than equity.** It's become common to have a cycle of cap raises.** They never look at organic revenue and only focus on the raise.** I want to explain the concept that debt is cheaper than equity. ** Debt is the first thing that has to be paid back.** Equity stake holders are bottom rung as bond or debt holders are paid first.** Once you are in revenue debt becomes an option.** Let me paint a picture of debt vs. equity.** You are wrong if you look at the equity side as just getting money.** What debt doesn't give you are experts helping build your business.** For most companies, it is a mix of debt and equity.** If you are pre-revenue and have to do multiple raises, each has a different valuation.** You have more options if you can get to an mvp and pre-sell products.** This showcases the conversation we have with some of our members. ** Don't take on personal debt, keep it in the corporation.** Some people feel equity is less risky but that is not my view.** Sometimes you take out more than you need with an equity play.** Some people's whole business model is to raise money.** Investors should bring more to the table than just money.** A lot of people don't vet investors.** Is it truly risk capital?** The investor base is a key stakeholder, and they should be relied on.** They know they need funding but don't specifically know what to do with it.** It's all about having the right conversations.** If the investors aren't asking hard questions, they are not really interested.** T's dinner with a potential investor.** It should be an uncomfortable conversation. Money can wreck relationships.** The chasm between design and revenue is huge.** You must prove to investors that you are an expert about your business.** There is a cost in time and energy in going after grants or dealing with investors.
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By No FollowersThe Most Misguided Decision Founders Make: Their Funding Structure -- The First Strike Incubator team breaks it all down on The No Followers Podcast
“Weighted Average Cost of Capital”
If you’re raising, here’s the real question: WHAT STRUCTURE IS YOUR BEST OPTION? Most founders get this wrong. Not because they’re reckless but because they’re misinformed. In this episode, the co‑hosts unpack: The real fundraising options available.-Why structure matters more than the size of the check.-How to choose HOW and WHAT DEAL to raise with.-The hidden costs founders never calculate.
Share your questions, comments, and POV with us.Follow, Subscribe, Like. Stay tuned for new media and events coming in 2026 on the In Focus Brands YouTube Channel.NO FOLLOWERS Podcast Video Episode 36. Weighted Average Cost of Capital.The best way to raise money is to sell something.** Debt is cheaper than equity.** It's become common to have a cycle of cap raises.** They never look at organic revenue and only focus on the raise.** I want to explain the concept that debt is cheaper than equity. ** Debt is the first thing that has to be paid back.** Equity stake holders are bottom rung as bond or debt holders are paid first.** Once you are in revenue debt becomes an option.** Let me paint a picture of debt vs. equity.** You are wrong if you look at the equity side as just getting money.** What debt doesn't give you are experts helping build your business.** For most companies, it is a mix of debt and equity.** If you are pre-revenue and have to do multiple raises, each has a different valuation.** You have more options if you can get to an mvp and pre-sell products.** This showcases the conversation we have with some of our members. ** Don't take on personal debt, keep it in the corporation.** Some people feel equity is less risky but that is not my view.** Sometimes you take out more than you need with an equity play.** Some people's whole business model is to raise money.** Investors should bring more to the table than just money.** A lot of people don't vet investors.** Is it truly risk capital?** The investor base is a key stakeholder, and they should be relied on.** They know they need funding but don't specifically know what to do with it.** It's all about having the right conversations.** If the investors aren't asking hard questions, they are not really interested.** T's dinner with a potential investor.** It should be an uncomfortable conversation. Money can wreck relationships.** The chasm between design and revenue is huge.** You must prove to investors that you are an expert about your business.** There is a cost in time and energy in going after grants or dealing with investors.