Venture financing in Washington, DC

Customers Bank, a full-service banking institution, offers venture financing solutions to tech-focused and venture-backed businesses in Washington, D.C., and across the United States, including those in the earliest startup and growth stages.

Startup companies rely heavily on venture financing to obtain the necessary resources to launch and expand. The venture financing option is typically geared toward businesses with an unpredictable cash flow and little brand presence. Without this form of financing, many of these businesses would not be able to get started.

Customers Bank Technology and Venture Banking Group focuses on subscription-based Software as a Service (SaaS) enterprises that have the endorsement of leading private equity and venture capital investors. We can provide loans ranging from $2MM to $100MM and customize a solution to fulfill your requirements.

Entrepreneurs should understand the ins and outs of venture financing as it can significantly impact the growth and sustainability of your business. Unlike traditional loans, this type of financing involves giving up some control in the business and sharing a percentage of future profits with the investors.

How funding works

Venture capital is typically dispersed in distinct rounds. Each round provides your company with extra capital to facilitate its expansion. The main rounds of investment are:

Seed stage: In the initial stage of a business’ development, entrepreneurs attempt to turn an idea into a feasible business plan with the potential for success. The money acquired in this stage is usually minimal and is used primarily for examining the market and creating a prototype.

Startup stage: During this period, research and development are usually finished, and the company is ready to introduce its product or service to potential buyers. Though an investor can see a prototype, more capital is often required to perfect products and services, acquire more staff, and facilitate an official business launch.

First stage: Also known as the "emerging stage," financing during this phase usually coincides with the market launch, when the firm is about to generate income. Venture financing is used for producing the product, selling it, and expanding marketing.

Expansion stage: Often referred to as the second or third stage, the business seeks growth capital funding to further extend its operations through market expansion and product diversification.

Bridge stage: Venture financing in this stage is usually for established businesses to finance activities such as mergers, acquisitions, or IPOs. Many investors elect to sell their shares at this stage, often profiting substantially from their investments.

Next steps

Startups and small businesses in Washington, DC, with high growth potential may find venture financing from Customers Bank to be an excellent option for obtaining the funds they need. Our team is ready to assist you in reaching your goals and succeeding to the next level. Get in touch with us now to get started.