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.

Read the full newsletter here.  

Hear the 2023 Techstars Equitech cohort pitch their innovations April 4th at M&T Stadium in Baltimore, MD. 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!

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.

The post We Faced a Crisis with the Collapse of SVB: Now What?! appeared first on UpSurge Baltimore.

As Kory reflects:

It’s the beginning of the Declaration of Independence that we all know well, but it’s the end that should demand our attention.

And for the support of this Declaration, with a firm reliance on the protection of divine Providence, we mutually pledge to each other our Lives, our Fortunes and our sacred Honor.

To me that reads… As citizens of God and this nation, we choose to live and die for each other, to be mutually responsible for our collective well-being, and respect each other as we respect ourselves and our country. The closing line of the Declaration is much more about our Interdependence than our Independence. It is only by the weaving together of our communities that the fabric of America is made colorful, beautiful and strong.

We owe it to each other to recognize our shared history, the ugly and the beautiful, the practice and the promise, so we can forge a new path together. One where everyone is valued, cared for and can be who they are as they discover and pursue who they will become. That’s the country I want to live in.

Which is why I’m proud of the work we’re doing at UpSurge Baltimore to support a movement to build the world’s first Equitech city. We have work to do to get there, but our goal is clear.

Read more in the UpShot

The post Independence or Interdependence? appeared first on UpSurge Baltimore.

Juneteenth was more than just a day of long-overdue freedom and celebration; it was also the catalyst for a wave of progress and opportunity. Formerly enslaved people engaged in the political, economic and social life of the South for the first time, with dozens of members of congress and 100s of state legislators. They pursued higher education and built businesses both large and small, and transformed communities across the country.

The Reconstruction Era also unleashed a two century wave of Black ingenuity, sparking inventions and innovations that form the foundations of our daily lives today.  Despite educational and economic obstacles, Black Americans reimagined technologies and sought patents in huge numbers.  Their inventiveness led directly to the industrial revolution. But history has whitewashed much of this legacy, as explored in this report from Brookings, stripping us of this proud and powerful history.

As we reflect on the Equitech vision today, it is frustrating that, 157 years after Juneteenth, so many Black Americans are still deprived of the tools to pursue their creativity and ingenuity –  access to capital, networks, and critical infrastructure – and the hard-earned and deserved credit for their legacy of accomplishment. It’s time we acknowledge the authentic record of Black innovation, and the policies and practices that are still impeding progress.  We can’t move forward as a city or a country if we can’t look with clear eyes at the history that put us here today.

Read the full UpShot Newsletter.

Subscribe to the UpShot.

The post The Hidden Legacy of Black Ingenuity… Let’s Bring it Into the Light.🌞 appeared first on UpSurge Baltimore.