Our rapidly growing business has raised $400K from friends and family. As it approaches profitability, the next phase would be optimized if we were to raise $2 million. We are 3 years old, and are currently patent pending status, with the possibility of a patent being approved in a few months. Our product is original and is sold online, in our own stores, and distributed to other retailers on the West coast. Okay, so much for the background.
Question, while we need only $300K now, and the balance over the next 24 mos., it seems to me it would be easier and more economical with respect to time and energy to go after the full amount now (ie $2M). Is there a way to structure an investment that is staged based on performance, at a rising (and scheduled) valuation? For instance, take $300K now at $4M valuation, and the subsequent amounts at higher valuations?
Just a thought. The fundraising process is so time consuming - I guess I`m looking for a short cut.
Thanks for any help!