Questions

My small wearable tech company just got a big box retail contract, how do I go about getting first round VC seed money or for our growing needs?

3answers

Option 1. Before you muddy the waters go to a local bank and see if they can help. They may be able to provide you a short term loan.

Option 2. Ask friends and family if they will loan you the money.

Option 3. Get a pitch deck together and get on AngelList


Answered 5 years ago

Depends on what you mean by "big" contract?
Also, are you UK or US based?

These questions will help you decide if the VC route is the right route and as the other commentator notes, speaking to a bank wouldn't be a bad idea either, although you may find you don't have the collateral to put up to support a loan. VC's also bring other value beyond money, if you get the right one.

Angels are a better route, depending on the amount of money you want/need. That should be informed by your cashflow projections to deliver the contract and the overall strategy of the business. Angelist is an option, though if you're not experienced raising you'll probably want someone trustworthy as a non-exec, consultant or advisor, to help you shape the proposition and help manage the raise.

So in short there are a lot of moving parts to answer this question.

A pitch deck is a must however, if for no other reason than to make clear in your own mind your immediate plans going forward. This is a good a template as any, to work from www.sequoiacap.com/ideas


Answered 5 years ago

Congratulations on getting your first retail contract! Not knowing anything about your product, it's hard to give you a specific answer, but I hope that my recent article would be helpful. The article compiles advice from venture capitalists themselves how they like to be approached by startup founders and what they are looking for before they decide to invest in a company: http://www.anagard.com/blog/2015/01/13/venture-capitalists-advice-to-startups-how-to-successfully-raise-funds/

By the end of the day, your business model and plan is the key, so please don't hesitate to call if I can help further.


Answered 5 years ago

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