An exciting prelaunch startup created by the core engineering team of Priceline (3 engineers: architect, first hires, worked together 15 years, responsible for all assets). The team has got 11 signed contracts representing $250k MRR and 7 more LOIs (not counted in $250k MRR). They need to leverage the contract to raise a bridge for 8-10 months runway to get revenues live. A prelaunch startup has $250k MRR in 18-month signed contracts with huge retailers. They need a bridge. What options are there? Any suggestions on what they could be doing/ who to go to?
You can use a Factoring company (someone who purchases invoices).
And likely they'll require some sort of seasoning of recurring payments before purchasing.
You can go for Angel capitol + will have to give up a big chunk of income.
If possible, write your own bridge loans by writing balance transfer checks on your credit cards.
Usually this costs 1%-1.5% of check's value, so way cheaper than any other option + instant + you keep 100% ownership of your company.
Answered 7 years ago
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