We faced down a crisis with the collapse of Silicon Valley Bank. So, what now for Baltimore's founders?
Whew...last week was quite a week for the tech community. Since the collapse of Silicon Valley Bank (SVB) just over a week ago, we and the founders and funders in our Equitech community have been working to understand both the direct and longtail impact of the blowup of such a central player in the national tech scene. As we've caught our collective breath, it seems the most far-reaching impact may be a contraction in VC funding and valuations, which is real for all founders, whether they were directly impacted or not. Startups are always balancing opportunity and runway, and this will be pivotal in the coming months if we are in a protracted funding slowdown.
It's not time to panic, it's time to prepare. Focus on the mission-critical activities, and the investors, customers and team members that anchor your work. If you have less than 6 months of runway, put plans in place now to stretch it as far as possible. Consider alternative sources of funding such as accelerators, pitch competitions, crowdfunding platforms, small biz loans, or government grants. (Each type of funding has its own pros and cons, so be sure to do your research before committing to any particular source.) If you need to raise funds in a hurry, start with your inner circle – those already invested in your success. Be open about your remaining runway, candid about your strategy to extend it, and clear about what can be achieved with their continued support.
If you need help figuring out your runway, here is a basic formula:
Months of Runway = current cash balance ÷ monthly burn rate
Monthly burn rate = Monthly income - expenses (or just expenses if you do not have income)
Monthly income = revenue + investment + other sources of funds
Finally, let's keep celebrating our momentum and our Equitech community. On the heels of a second record year, UpSurge just released Momentum 2023, our annual report on Baltimore’s startup ecosystem and its accelerating progress. The upshot? We’re poised for a breakthrough. By every metric – companies, dollars invested, average deal size, mega-deals, diversity – our city is a tech economy on the rise and a real bright spot in Baltimore. But our nascent ecosystem still has shallow roots that need constant tending.
We all have a role to play – as individuals, companies and investors. Nurture growth by: taking a call or meeting, and following up with action; making intros to potential customers or pilot partners; angel investing in a promising company; and, championing founders with your networks and contacts. In so many ways, Baltimore tech is breaking the standard playbook as it grows into the country’s first Equitech city.
Transformation often arises from upheaval. In the aftermath of the SVB collapse, Baltimore can emerge stronger than ever.
Join us for Techstars Equitech Demo Day to celebrate the 10 game-changing companies from the latest cohort! Space is limited and available on a first-come basis.
Featuring a keynote from Governor Wes Moore!
What's UP: Founders
For all founders, we've continued to update our founder resource list with contacts, how-to guides and perspectives on navigating a slow VC market.
b.Well has a new home! They moved into their first HQ right on the edge of Federal Hill aiming to provide a dynamic workplace experience for their team.
Baltimore's business and political leaders met to discuss The State of Baltimore and its reliance on both a tech-enabled and equitable city.
Heads UP: Opportunities
If you are a founder or investor affected by the SVB collapse fill out All Raise's 5-minute survey to share info with lawmakers & storytellers discussing SVB!
Apply for Black Ambition's HBCU Prize & the Black Ambition Prize. Companies can compete for $100K & $1M in funding, respectively. 👀
Warrior Rising accepts & assists veterans in starting their own businesses at any stage! Fill out this form to begin your application process.☀️
NSF's Convergence Accelerator funds teams to solve societal challenges through convergence research & innovation. Learn more here.
Verizon is helping small businesses get digitally ready with free online courses, expert coaching, & grant opportunities. Register here for Digital Ready! 📷
Applications are open for FORWARD, a business accelerator for Black & Latino entrepreneurs created by Square. Click here to apply! ⏩
Apply by May 15 for the Watson Institute Venture Accelerator which equips impact & growth-driven enterprises to achieve product-market fit and scale!
Heads UP: Events
BMore's tech is unique because of our community! See that community and find support TONIGHT at Equitech Tuesday (every Tuesday) 6-8 PM at Guilford Hall Brewery. #ThisIsEquitech ↗️
The MedTech Innovator Roadshow is coming to Charm City 🦀 March 28-30 for the 1st time! The Roadshow will be divided between Biotools & medtech.
Signup for RoadPitch, a pitch tour for Black pre-seed tech founders. June 19-24 they will be traveling from Seattle to Vegas pitching to industry investors.
Momentum 2023provides a look at Baltimore tech’s overall growth and progress. It highlights, for example, that startup funding increased for a third straight year in 2022, despite a 31% decline in national venture markets, and over half of our most active investors weren’t in Baltimore three years ago.
Diversity 2023, a research report from Johns Hopkins University’s 21st Century Cities Initiative, commissioned by UpSurge, on the diversity of Baltimore tech companies. It finds that, while not nearly as diverse as our city, our startups are more diverse than the national averages.
$11 Billion Opportunity Report offers a focused analysis of potential avenues to unlock increased funding for Baltimore startups.
The UpShot is Baltimore’s Equitech ecosystem news, curated for startups, founders, funders and friends, all working together to build the country’s first Equitech City. ↗️↗️↗️