Alternative Funding for Non-Tech Founders

Not every founder is chasing a Silicon Valley-style startup dream. Across the country, entrepreneurs are building businesses in franchising, e-commerce, consumer goods, and even launching their own investment funds. These non-traditional founders are critical to the economy, yet they often face the same roadblock: access to early capital.

Traditional systems have not kept pace. Bank loans demand collateral, and venture capital favors billion-dollar ambitions. For most founders outside of the startup mainstream, neither option fits. This is where alternative funding for founders becomes essential, and where Chisos has stepped in to fill the gap.

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The Capital Gap for Non-Traditional Founders

The U.S. Census Bureau reported more than 5 million new business applications in 2024, reflecting a generational shift toward entrepreneurship.¹ But many of these ventures—franchises, small funds, consumer product brands—will never qualify for venture capital. Others lack the collateral or credit history for bank financing.

The result is a critical gap:

• Franchise owners must fund initial franchise fees and startup operations.
• E-commerce founders need early inventory and marketing budgets.
• Consumer packaged goods operators must cover manufacturing and distribution costs.
• Fund managers require personal runway while securing their first limited partners.

Each of these businesses has the potential to grow sustainably, but without access to fair and flexible capital, progress often stalls.

Why Traditional Funding Falls Short

Capital is structured for extremes. Banks provide loans for low-risk, asset-backed ventures, while venture capital invests in startups aiming for massive exits. That leaves most non-traditional founders with limited options.

This mismatch is compounded by industry trends. As we noted in our April 2025 blog Done with Pitching VCs? Alternative Funding for Founders Who Want More Control, fundraising cycles have lengthened, pre-seed deals have declined, and investors demand significant proof points even before product-market fit.² For founders in franchising, consumer goods, or niche financial services, those hurdles are often insurmountable.

The Rise of Alternative Funding for Founders

In response, alternative funding models have emerged that meet founders where they are. These models are designed to provide:

• Flexible funding sizes between $25,000 and $100,000.
• Founder-friendly repayment structures tied to income or milestones instead of rigid schedules.
• Equity preservation, allowing entrepreneurs to retain control and ownership.

This shift acknowledges that not every founder needs millions in venture capital. Many simply need a modest, fair investment to validate their idea, prove early traction, or sustain themselves through a critical stage.

How Chisos Supports Non-Traditional Founders

Chisos was built to close this gap. We fund individuals first, evaluating their grit, clarity of vision, and business plan rather than their networks or pedigree. Our capital has helped:

• Franchise founders launch new concepts without draining savings.
• E-commerce operators cover early inventory runs and scale digital marketing.
• Consumer product entrepreneurs bridge the gap between manufacturing and retail distribution.
• First-time fund managers secure a runway while building their investor base.

By focusing on people instead of institutions, Chisos ensures that capable entrepreneurs across industries can access the funding they need to grow.

Why Alternative Funding Matters in 2025

The economic landscape in 2025 has only reinforced the importance of alternative funding. Entrepreneurship is no longer defined exclusively by software startups. Instead, it spans a wide range of ventures that are cash-efficient, sustainable, and still globally impactful.

Yet traditional capital markets remain slow to adjust. Venture capital firms continue to concentrate funding in technology hubs, while banks tighten credit standards. Alternative funding gives non-traditional founders the ability to build responsibly on their own terms, without waiting for validation from legacy gatekeepers.

Practical Steps for Founders Seeking Capital

If you are a non-traditional founder exploring your options, here are a few ways to move forward:

1. Clarify your funding needs. Identify whether you need $25,000, $50,000, or $100,000 to unlock your next stage of growth.
2. Explore flexible models. Look beyond traditional loans or VC to options like Chisos that prioritize accessibility and sustainability.
3. Build a clear plan. Focus on showing realistic growth paths, personal commitment, and business fundamentals.
4. Apply for founder-first funding. Organizations like Chisos provide streamlined application processes that deliver decisions quickly.
   

Non-Tech Founders Backed by Chisos

Chisos is proud to support entrepreneurs who are rewriting the rules outside of traditional tech:

• Loren Lewin, founder of Companion Candles, an award-winning pet-friendly candle startup.
• Wynn Austin, founder of Wynn’s Kitchen, a CPG brand rethinking the Asian food aisle.
• Shannon Davenport, founder of Esker Beauty, a body-care-only product line specializing in the skin below the chin.
• Rich Ferreira and Gabe Zichermann, founders of Two Spoons Creamery, launching the first high-protein ice cream with zero added sugar, gluten-free, keto-friendly, and GLP-1 compatible.
• Michael DeVerna, co-founder and CEO of MacroFit Inc., the fitness e-commerce platform JoinfitApp.com and Macrofit Fitness app, combining hardware, workout content, and AI-powered coaching.

These founders represent the diversity and strength of non-tech entrepreneurship, brands that create tangible products, expand consumer choice, and generate sustainable jobs.

Why Work with Chisos for Alternative Funding

At Chisos, we believe that people are the investable asset. Our mission is to unlock capital for founders who have been overlooked by banks and venture capital. Whether you are opening a franchise, building a consumer product line, or launching your first investment fund, we provide the early capital you need to move forward.

Working with Chisos means:

• Accessible funding for founders across industries and geographies.
• Flexible repayment structures tied to your income, not fixed debt.
• Aligned incentives that let you retain more ownership.
• Efficient processes that minimize delays and distractions.

Take the Next Step

The future of entrepreneurship is broader than the startup playbook. With alternative funding for founders, you can build with confidence and control.

Apply for funding today at Chisos.io.

Footnotes

1. “U.S. Business Applications See Slowdown in 2024.” Dynamic Business, 14 Feb. 2025, https://dynamicbusiness.com/topics/news/u-s-business-applications-see-slowdown-in-2024.html.

Chisos Capital, Done with Pitching VCs? Alternative Funding for Founders Who Want More Control, April 22, 2025.