Example: Market size 150,000 or less on a yearly subscription model ($60 per year) for a total of $9 million annual revenue at most. Costs estimated to be less than 500,000 annually.
Hmm... if I have such a good profit margin, I will not look for any funding - I feel this is funny. Just within one year I will have more than $8 million to spend, there aren't so many Startups need billions dollar at start, this is not a oil refinery to building aircraft.
Now I do consider a need for funding if all the above are just forecast and there is a need of money to develop the subscription model and marketing activities.
There is no clear answer, it depends the current development ... normally engage a valuer is a good approach, but the VC needs to accept it (this is based on my 20 years in valuing the companies). Normally, the funding can be structured as a project, entity or combined and can be loan, entity or combined too.
Hope the above helpful to you
