In Case You Missed It: Launch Links - March 2022 #3

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Some interesting links we found across the web this week:

4 Keys to Grow and Scale Your Startup 
One common thread between all types of startups is navigating the pathways between growth and scaling. The critical difference from growth is that scale is achieved by increasing revenue without incurring significant costs. While all startups must grow, founders who want to succeed have to consider how scaling will be attained. This Entrepreneur article lists out four concepts for founders to implement to scale successfully. These concepts include mastering the power of digital advertising, building and maintaining an effective support network, maximizing time and resources by outsourcing sales and meeting the needs of an informed customer base.

Debt Financing Could Heat Up as Venture Capital Slows
As global venture funding in February 2022 fell by $10 billion month over month, the venture capital market seems to be in the midst of an adjustment. However, the debt financing market appears to be heating up. Different kinds of asset-backed debt have become popular, as this type of debt can be secured by assets and loans that startups generate. In addition, debt can give startups cash they need while not diluting the stakes of founders and shareholders. As equity capital becomes more expensive, experts expect that debt financing will have a record year. Learn more in this article from Crunchbase.

How Cap Table Planning Can Ensure Your Startup’s Growth 
Investors often want their returns back through proper share management. One way to ensure that shares are properly managed is through cap table planning. The cap table is a document that lists all of the company’s shareholders and their percentage of ownership. This Startup Info article lists out some of the ways that properly created and maintained cap tables can help startups grow. As noted in this article, proper cap table planning can help avoid potential disputes among founders, ensure startups comply with securities law, help startups understand their distribution of ownership, track startup’s progress in terms of equity distribution and help startup raise money by presenting clear equity distribution.

4 Steps to Bring More Much-Needed Diversity to Startup Culture 
A September 2021 Glassdoor survey found that 76 percent of employees and job seekers prioritize a diverse culture when weighing job offers. It is clear that diversity and representation are ingrained in the decision-making processes for every company. However, creating a diverse culture can often be challenging for startups, as founders face other stressful priorities. This Entrepreneur article lists out some strategies for founders who want to guide their businesses to be more diverse and representative. These strategies include seeking out outside diversity groups, pushing hard for more diverse applicants and hires, putting someone in charge of diversity and inclusion and being able to reflect diversity of life experiences.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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