Key Points
- Lenders and investors often look at who your partners are, not just your technology
- Strong partners reduce perceived risk and improve financing terms
- Partnerships can unlock cheaper capital by anchoring demand and sharing exposure
- The structure of these relationships matters as much as the contracts themselves
Introduction
Every founder wants cheaper capital. The question is: how do you get it? Many assume the answer lies in the strength of their technology. In reality, lenders and investors often focus less on the tech itself and more on the partners standing behind it.
Who Carries the Risk?
Ask yourself: if things go wrong, who is absorbing the risk? If the answer is only your company, investors will price that risk into your capital. If the answer includes a large corporate or industrial partner, the story changes.
What Does an Offtake Agreement Say?
An offtake agreement does more than guarantee revenue. It tells lenders that someone with a strong balance sheet has already validated your market. Are your contracts written in a way that makes financiers comfortable?
How Does Construction Get Delivered?
Capital-intensive projects carry construction risk. Who is responsible for it? If your startup is carrying all of it, costs go up. If an experienced engineering, procurement, and construction (EPC) firm takes responsibility, your capital gets cheaper.
Are Partners Visible in Your Story?
Do your fundraising materials show your technology, or do they show the partners that stand behind it? Investors often make decisions based on confidence in counterparties. Your deck should highlight those names as much as your product.
What Happens When Partnerships Are Structured Well?
When partnerships are structured properly, risk is distributed. Lenders see stability. Investors see lower exposure. The result is cheaper debt, stronger equity interest, and smoother paths to scale.
Cheaper Capital Follows Stronger Partners
The key to unlocking cheaper capital is not just having the right technology. It is structuring partnerships that shift risk onto stronger shoulders. Ask the hard questions early. Show investors the balance sheets behind you. That is how you move from expensive money to smart money.
If you are ready to raise capital, do not walk in alone. Tegro Partners helps founders design partnerships that de-risk projects and attract cheaper, smarter financing.