It can be difficult for startups to figure out their best options for raising capital and hanging on to enough cash to survive while trying to become profitable, especially when it comes to those startups trying to get government contracts. That's why Eastern Foundry, the Crystal City-based co-working space and startup incubator, is hosting a one-day "Deep Dive" class on April 17 to help entrepreneurs learn about ways to finance their new business and stay afloat in their first days.
Eastern Foundry was founded specifically for creating pathways for small companies to get government contracts by veterans with experience of it themselves. The decision to hold an all-day class on financing a business was spurred on by the people at a recent government contracting certificate boot camp, who all wanted to know more about the financing aspects of making a successful business.
"There was unanimous agreement that they wished they had a better handle on their financial options," said Geoff Orazem, the founder and CEO of Eastern Foundry. "That really resonated with us because one of the scariest moments for us founders was looking at the financial issues."
The class will bring experts from banks and venture capital firms to talk about debt and equity financing, taking a look at all the steps and how to pitch to financiers successfully. The issues of raising money from friend and family and how to go after government loans will also be addressed. Even MBA holders don't always know how to take what they learned in school and use it with their actual business as they build it.
"There's a real difference between theory and application," said Michael Stack, an associate at Eastern Foundry who is organizing the event. "We're offering comprehensive information that students can use from accountants and lawyers."
It can get even more complicated for companies wanting to become government contractors. Banks and investors can be leery about giving money to them because of the quirks of government contracts messing with cash flow.
"There's a chicken and egg dilemma with government contracting," Stack said. "The long billing cycles can make it hard to keep up."
The speakers at the event will include people from Middeland Capital, District Capital Partners, Access Capital Bank and Capital one among several others. The course isn't just for government contractors though. Most of the information is universally important for startups trying to plan out their financing. Depending on how it goes, there will probably be plenty more of the one-day deep dive courses in between Eastern Foundry's boot camps.
"We can put these things together almost at will," Orazem said. There's a lot of interest in answering the questions around these critical decisions."
