Delivering tailored debt and deposit solutions to venture and PE-backed startups to fuel innovation and growth.
Customers Bank is a full-service banking partner that provides venture financing solutions for technology and other venture-backed businesses nationwide, including early-stage startups, through growth stages or expansions.
We offer many different commercial financing products designed to meet the individual needs of startups and small and medium-sized businesses. Our Technology and Venture Banking Group focuses primarily on recurring revenue, subscription-based, and SaaS businesses backed by top-tier private equity and venture capital firms. We specialize in $2MM-$100MM loans but can customize a solution to meet your needs.
Venture financing is usually done in several stages. Each stage provides the company with more capital to fuel its growth. The main stages of investment are:
- Seed Stage: In this earliest phase of business development, entrepreneurs aim to transform an idea into a solid business plan with the potential to become successful. Funding in this stage is usually small and is primarily used for market research and prototype development.
- Startup Stage: In this phase, R&D is typically complete, and the company is ready to advertise and market its product or service to potential customers. While there is usually a prototype to show investors, a more substantial infusion of cash is often required to fine-tune products and services, hire additional personnel, and support an official business launch.
- The First Stage: Also known as the “emerging stage,” financing in this phase typically coincides with a market launch, when the company is about to start generating profits. Venture financing usually goes toward actual product manufacturing, sales, and increased marketing.
- The Expansion Stage: This is also called the second or third stage, where the company seeks growth capital funding to further expand the business through market expansion and product diversification.
- The Bridge Stage: Venture financing in the bridge stage is typically for mature businesses to support activities like mergers, acquisitions, or IPOs. Many investors choose to sell their shares at this stage, often receiving a significant return on their investments.
Evaluate Your Business Needs
Venture financing can provide a source of capital that complements equity financing. It can provide additional capital to fuel a business’s growth initiatives without diluting the ownership stake of existing investors.
Venture financing is particularly important for startup companies because it gives them the funding they need to grow and expand. Without venture financing, many startups could not get off the ground.
Before choosing a financing option, evaluating your business needs is important. Consider factors such as the amount of funding you need, the stage of your business, and your growth projections. If you need a large amount of funding and are in a later growth stage, consider venture financing.
Unlock Your Business Potential with Customers Bank
Venture financing from Customers Bank can be an excellent way for startups and small businesses with high growth potential to secure funding. Our team is ready to help you achieve your growth goals and reach the next level of success. Contact us to get started.