Finding the right capital to fuel business growth presents a major challenge for entrepreneurs who want to maintain control of their companies. While venture capital dominates headlines, alternative funding approaches offer powerful options without equity dilution. Ryan Ridgeway, founder and managing partner of Cirrus Investments and Cirrus Capital Partners, has spent a decade helping companies secure over $800 million in non-dilutive capital. His expertise spans from early-stage companies to established middle-market businesses seeking smarter financing solutions.
Tap into Private Credit Options
When looking for growth capital, many entrepreneurs overlook the potential of non-bank funding sources. Ryan explains that private credit offers compelling alternatives to traditional venture capital. “Without getting too exhaustive here, when you think about non-dilutive capital or credit or debt, which we can use interchangeably, private credit is simply non-bank capital,” he points out. These sources include private credit funds, family offices, and high-net-worth individuals interested in lending to growing businesses.
What makes private credit particularly attractive is its adaptability to different business models. “If you’re a CPG company with an asset profile – let’s say you have accounts receivable and inventory – you’re probably going to appeal to a certain type of lender,” Ryan explains. He contrasts this with software companies: “Maybe a SaaS company with high growth and recurring, sticky revenue, who’s probably going to be more of the darling for venture capital dollars but also looking for credit, there’s going to be a different subset of credit there.” The key insight Ryan emphasizes is understanding your specific business model. Different lenders specialize in different sectors, making it crucial to identify which funding sources align with your company’s profile. Each business type attracts different lenders with specialized expertise in that particular sector.
Navigating the Capital Landscape
Finding the right lender can feel overwhelming for busy entrepreneurs. “It sounds like a daunting process,” Ryan acknowledges. “How do I even go about finding which lenders are going to be the best fit for my business? Because a lot of this is just frankly private market data.” Simply searching online provides limited results. “Even if you do a Google search, you might pop up with some folks who are advertising for what you’re searching for,” Ryan notes. “But you don’t know whether those groups are going to be the best fit for your business or whether those groups are simply just spending the most dollars to appear number one on Google.”
This challenge led Ryan to develop a systematic approach at Cirrus. His team analyzes both quantitative and qualitative aspects of a business, then matches them against the entire capital market landscape. “We understand their respective underwriting criteria. We know their average check size, the credit instruments. We know exactly what industries they like, geographically where they deploy capital, and about 50 other data points,” he explains. This process removes much of the friction involved in searching for the right capital partner.
Build Strategic Financial Partnerships
Ryan’s approach extends beyond just finding potential lenders. “We’re good stewards of being aligned until the finish line,” he says. “It’s not a set it and forget it experience – we’re true thought partners.” This support becomes particularly valuable during the later stages of the funding process when companies receive term sheets and formal documents. Having experienced guidance matters during negotiations. “It can help to have a coach in your corner, letting you know, ‘Hey, this is really typical to find in a term sheet or agreement versus this isn’t so typical. Maybe we can push back and negotiate against this a little bit,'” Ryan explains. This expertise helps companies secure better terms than they might on their own.
The Cirrus approach serves various stakeholders in the business growth ecosystem. Beyond founders, Ryan works with “CFOs, maybe fractional CFOs, folks that sit on the cap table, maybe finance or accounting related folks that you work with or vendors.” This network approach creates a comprehensive system for accessing non-dilutive capital. For companies weighing their funding options, Ryan offers a straightforward alternative to the equity-versus-debt dilemma. “If you are engaged in these conversations about ‘should we give up equity or not give up equity,’ perhaps we can fund some of the predictable elements of the business like sales, marketing, growth, etc. with non-dilutive capital,” he suggests. This targeted approach preserves ownership while fueling strategic growth initiatives.
Want to learn more? Connect with Ryan Ridgway on LinkedIn to explore smart funding strategies.
