A look at ways Utah businesses can continue to raise capital
Ever since the tides turned in Utah’s favor, there have been some great stories about businesses who’ve hit the jackpot and earned millions in capital. And while these should be taken as exceptions, it’s interesting to hear from these business owners to see how they reached that pinnacle.
One of these examples is Cydni Tetro, the CEO of Brandless, an omnichannel service platform. She recently shared some thoughts on how her company achieved a multi-million funding arc, while other business leaders are also talking about how to bring more stories like Tetro’s to the Beehive State. It’s advice that any business can use as they continue on their path.
When it comes to funding, there’s a short-term solution as well: a business line of credit. First Utah Bank offers this option with 365-days-a-year monitoring.
The Brandless story
The funding round that led to $118 million for Tetro’s company is just one of several that was led by women-run businesses. According to Utah Business, Entrata and Lucid each raised $500 million in capital this year. It’s still a small percentage, though. The same article details that women-led companies raised $6 billion – while other companies raised $195 billion in comparison. This is a large mountain to climb, but many women entrepreneurs around the country, and not just in Utah, have learned from Tetro’s story and how they can apply that to their own situations.
Tetro told Utah Business that part of what she did to achieve this was open up the concept of what it means to make a deal. Looking beyond financial transactions and into relationship building helped work through the details.
“I think about the fact that every day we’re creating these relationships, we’re exchanging value, and that’s becoming the platform that drives success,” Tetro says.
She also talks about being the most active voice in the deal-making conversation, leading the conversation and making sure progress is always made. This is something that she believes is particularly a change in perception when people negotiate with women leaders.
“You have to be an activator,” Tetro says. “You have to get to a point where you stop being afraid of what might happen.”
It’s also important to be mindful of how the business world is ever-changing, especially in terms of the pandemic and the response to it.
“We’re at this interesting point in time because the landscapes in business and Utah, and even for women, are forever changed,” Tetro says.
The state of capital funding in Utah
Tetro recently led an economic outlook summit panel where she asked contributors this question: “How much capital should be raised in Utah to fuel the growth of the economy?” One of the panelists – Tara Spalding, managing director of the BoomStartup Accelerator – said it should be $15 billion, which is nine times more than what Utah has received.
Spalding, writing in Utah Business, believes that accredited angel investors might be the key to getting more capital flowing to fledgling businesses. She cites that there are 71,000-plus millionaires in the state, which could be part of a locally-based pool of investors as opposed to one that would be mostly out-of-state money.
Spalding also writes about the advice another panelist gave, which is found to be a smart way to get more capital into the state. She writes that Curt Roberts, partner at Kickstart fund, suggested that “our next growth will come by distributing more capital throughout the organization and not be too conservative on employee investment education or distribution.”
So, the key is to look within Utah as much as outside of it, and to invest wisely with risk. “Utah people need to improve their interest and participation when it comes to equity-based deals, as employees, direct or indirect investors, and founders, to really catch up on what this great place deserves,” Spalding writes.
Business lines of credit can help Utah businesses
One aspect of building a business is to have different avenues for having the money drive your Salt Lake City business. With a business line of credit, you can easily monitor and control employee spending, drive volume from invoices and check transactions to your card with 24/7 ease.
First Utah Bank offers credit cards with some distinctive features, including receiving automatically credited 1.00% cashback on all purchases. There are also no annual fees, up to 25 grace days and no requirements to pay down to zero each month. Interest is 13.49% on purchases and balance transfers, and 19.49% on cash advances.
A business credit card also includes travel insurance, including baggage delay reimbursement and rental vehicle damage waivers. If you pay for a company cell phone through a First Utah Bank line of credit, we also offer phone protection and reimbursement if there is damage or theft, as well as automatic new retail purchase security.
Learn more about business lines of credit for Lehi, as well as all the services we provide, by going to our website.