Angel investing · Fundraising

I received a 7-figure pre-purchase gurantee from a F500 client. What kind of investor should I approch for funding?

Anonymous

August 13th, 2017

My beta test is very limited but clearly impressed the F500 client. I'll need more money to fulfill the client's milestones. An angel round seems like it wouldn't be enough, but I don't have a track record of revenues to approach VCs either (I think). Who should I turn to? Please note, this isn't a LOI, it's a payment guarantee.

Anonymous

Last updated on August 14th, 2017

Your client is willing to pay you 7-figures to deliver a product, so have you considering requiring them to fund its' development?


Assuming a one million dollar payment, you could ask for a 25% deposit, use that to leverage additional funding. If your client isn't willing to provide a deposit to commission the work - you don't have a client and should consider shopping around.

Jean-Benoit Richard Serial entrepreneur currently doing his doctorate in administration (Using AI to improve BP)

August 14th, 2017

It depends on your business. If the payment is guarantee, than run to the bank and get a loan. Where are you located in the World? What kind of money are you looking for. Depending on the amount needed, different solutions can be used.

dayle bowen I built a startup and sold it, now I help others do the same

August 14th, 2017

Microsoft gave me a 6 figure check for services that helped me launch one of my startups, great way to go, didn't have to give up any equity, and closing a service deal was way easier than closing VC deal, but gave me the credibility to get VC money later. Why don't you preserve your equity and find a way to structure a deal with the corporate that accommodates your cash flow requirements, then go for VC money, once you have that win under your belt?

Greg Miller CEO and Founder at Greg Miller and Associates

August 14th, 2017

Good advice here. I used to do these kinds of deals for a F500, including progress payments that took care of funding what we wanted without having you or us deal with unkown investors. They can be good for everyone, but get a lawyer. We F500 guys don't write unconditional checks or guarantees.

Joseph Wang Chief Science Officer at Bitquant Research Laboratories

August 14th, 2017

What you are looking for is a factoring agency or a bank. In Hong Kong, you might want to look at Qupital or go to a bank with the payment guarantee and see if you can use it as collateral for a loan.

Greg Miller CEO and Founder at Greg Miller and Associates

August 14th, 2017

Get a competent lawyer to look at what the offer really is. Who makes a no-string-attached guarantee of payment to a startup with no product, no track record and no funding?

Bill Vanke VP Global Sales & BD | Sales Pipeline Forensics | Business & Society Observer and Commenter | Wireless | M2M

August 14th, 2017

Why not ask your F500 client? Even a traditional bank/lender since they often are keen to loan money and use the receivable as collateral for repayment. Be prepared to support your investment/credit worthiness with a profit profile for your business. You will be making a profit, right? BV

David Akhazemea Business & Strategy manager

August 14th, 2017

There must be a form of commitment by way of an initial deposit from the F500 client. In any case, get a lawyer vast in this kind of transaction to be involved.

Ketan Chauhan CEO at Fashion Sourcing Club India

August 14th, 2017

I'm from apparel Industry . My company has the ability to provide any services regarding this Industry . Email - fscindia.ds@gmail.com

Ali Mahmoud Enthusiastic entrepreneur, Business Analyst and PM

August 14th, 2017

Don't search for an investor to share you in your company. But just search for an investor or a merchant who is willing just to finance this delivery. Upon delivering and receiving all your payments from the client, pay the investor back with his profits. I believe this is the best way that will help you to make it done.

wish you all the best