top of page
Search

Why VCs Should Stop Wiring Money Upfront – And How Banks Can Win a Lot of New Business With This New Setup

Startups are sitting on investor money they do not need yet, which is not only risky but also costly. It is not only triggering banking red flags but also costing VCs millions in negative carry. 


One freeze, one payment delay, or one compliance hurdle, and the entire business can collapse. However, in this setup, there is a huge opportunity for banks and PSPs to attract business with what everyone needs, and it is also very easy to implement. 


The deferred funding model is not only better for both VCs and startups but also for the banks and payment providers. Founders and funds are not just looking for a place to park money but they want a trusted financial partner that is flexible, transparent, and responsive. 


Whoever offers a real solution can win clients easily. 


 
 
bottom of page