My company does about $3 million in revenue a year. I would like to get a loan for marketing expenses ($500k-$1m for 3-6 months). From what I've seen, it seems most credit lines are only up to $100k, but I'm entering an area here that I'm unfamiliar with. and could really use some advice. I'll be wanting to talk with someone who understands this :) Thanks!
There are several ways to raise money.
Valuation is about putting the company on the path to an attractive exit in which the founders do extraordinarily well, the Angel investors do very well, and later round investors all get their expected returns. Start-up Valuation is not about control, which happens in the terms of the shares purchased rather than in the volume, since experienced early-stage investors rarely want a simple majority ownership. The seesaw for the founders is often about how much money to raise versus the pre-money valuation to use. The right amount of money to raise is usually the amount required to achieve the next inflection point in perceived value of the company. If you do expect to raise more money, since raising money always takes time, you should be planning to start raising the next round 3-6 months before your current runway expires. Let us consider a company developing a software-based solution that will run in the cloud, be sold on a subscription basis, and requires content, as well as platform development. The company needs enough money to hire and contract some development expertise, to hire some marketing and sales resources, to fund travel and to address some administrative basics including insurance, payment systems and an employee equity participation programme. Initially the founders have decided they need to raise $2m on a $10m pre-money valuation which means they will sell 16.66% of the company.
You can read more here: https://startupgippsland.com.au/how-to-value-your-startup/
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
