I am pretty novice in terms of technicalities of raising funds.
Our company is a focussed research and data management firm. We started 1.5 years back and since then have been able to generate revenue of only USD 320,000. Now we feel the time has come for us to go to the next level and for that, need some funds for growth and expansion (product development, sales & marketing, etc).
Which way of raising fund would be suitable for us and how much should we be able to raise looking at our past financials.
Once your profitable and have a concept that works - finding investors is not the problem, its getting rid of them. Who doesnt want to put money into something that has proven to work and make a return?
Seeding and funding is more for people trying to build a concept they think will work, and need investors to make it happen.
You guys are doing well, focus on increasing your revenue, monitization strategies and customer acquisitions.
Dont give away a bit of your company for more capital - unless you fear your company is about to close if you dont get funding - then push on - learn to do more with less just like you did to get to where you are today. Most services are BS when it comes to expansion and growth. So my advice is always avoid funding if you can -
-You stay in complete control - no responsibility to investors, no debt, if you actually solve the revenue problems then you will be capital positive.
My recommendation is break down what excatly you want to do in terms of product developement and sales & marketing - come up with some budgets and what return you would expect - do this for two scenarios - one with no external funding and one with external funding - then get started with the no external funding
you will quickly see that had you got funding for sales and marketing you would be literally getting an investor to throw their money in bin on the condition you will go back to the first plan anyway just to pay back your investor.
Really hope this helps you out, all the best
In my mind Crowdfunding is the best way to raise funds without giving up anymore equity of your company. With a proven track record of sales and already ready and willing customers, you already have a tribe to promote to. Having already achieved success milestones shows potential backers that you are reliable and have what it takes to fulfill whatever it is you are raising money for.
If you are looking to raise a few hundred thousand or even a million you should plan on spending a minimum of $25,000 on campaign and have at least 12 fulltime members on team to create, launch, and run entire campaign.
I'm about to launch campaign in November and we will have tens of thousands into campaign, have 12 committed members and over 100 Ambassadors involved and our goal is to raise $1,000,000.
Crowdfunding get's more national media attention for your company, allows you to capture another market, and gives you a platform to market off of for life.
Hope this helps!
I believe you should try some crowdfunding sites and also since your business has generated quite some amount of revenue you should try pitching to some investors. All the best