I appreciate your comments. We have a prepared prospectus for equity investment and we will go ahead with it if we cannot find another way. The downside is we have used almost all of our money to get this far and would have very little to buy equity. Therefore, we would have to give almost all the equity to investors and become employees. Giving up controlling interest, while not desirable, is likely. However, we would need to retain enough interest to share in the success.
We are looking for commercial lending. However, for a startup company they show no interest at all except with almost 50% down.
This preparation and loan hunting has taken almost six months. That is why we are trying to find an investor loan. Our thinking, perhaps it is naive, is that on a loan with interest plus a reasonable premium, we may not have to give up as much equity. In your experience, is this idea for funding a realistic expectation. We would rather have honest feedback now than waste limited time and resources pursuing an approach for no results.
Also, we have been looking at investor websites and some seem promising. Our difficulty is determining if they are legitimate or if they are scams. Do you have any tips on that issue?