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.
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.
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.
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?
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.
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.
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?
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.
I'm from apparel Industry . My company has the ability to provide any services regarding this Industry . Email - firstname.lastname@example.org
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