For projects requiring hundreds of millions, fundraising should be split into phases. The initial "pre-industrialization" phase, focused on proving technology, is suited for venture capital. Later phases for manufacturing and scaling should target project finance structures with debt/equity combinations and strategic partners.

A massive purchase order from Trader Joe's created a $1M funding gap. Instead of selling equity at an early stage, the founders secured debt from friends and family, backed by the PO and personal guarantees. This preserved their ownership while fueling a pivotal 10x growth moment.

A company can achieve a public listing without a traditional IPO. The strategy involves first using Regulation Crowdfunding (Reg CF) to raise capital from customers, building a wide shareholder base. With this pool established, the company can then pursue a direct listing on an exchange.

When traditional metrics like ARR or DAUs are unavailable, ambitious hard-tech startups can leverage large, non-binding Letters of Intent (LOIs) from future customers to validate their vision and attract early-stage investment.

To raise its first capital, Tempur-Pedic offered non-professional investors a hybrid deal: a promise to repay 4x their initial investment, plus a small (1-2%) equity stake. This structure de-risked the investment for friends and family while preserving significant founder equity.

Avoid the classic bootstrap vs. raise dilemma by using customer financing. Pre-sell your product or service to a group of early customers. This strategy not only provides the necessary starting capital without giving up equity but also serves as the ultimate form of market validation.

By ensuring customers pay back their acquisition cost quickly, you eliminate cash as a growth bottleneck. This self-sufficiency means you aren't forced to take loans or investment prematurely, allowing you to negotiate from a position of strength and on your own terms if and when you decide to raise capital.

To provide non-recourse financing, the firm structures the deal not as a loan but as a co-investment in a new LLC. The customer contributes common equity (first-loss capital), while the firm's financing is preferred equity. This legally shields the investor's personal assets and makes the capital non-callable.

Public markets favor asset-light models, creating a void for capital-intensive businesses. Private credit fills this gap with an "asset capture" model where they either receive high returns or seize valuable underlying assets upon default, securing a win either way.