We launched back in March with an expensive hardware product. For the first wave of manufacturing we needed some financial outsource so we got a 300K USD loan from an individual. We have had a good amount of sales, and now in order to speed up the process of manufacturing and scale we need a big cheque from the VC's. Now the question is, will that loan be a negative point for us? Or they will look at the process and the time to cashflow-positivity? We need to return the loan 6 months from now.
The short answer is NO. The loan, depending on the structure (was it equity or straight & debt) will not make investors jump. You basically raised a seed round for a lack of better terms. In fact if it is not equity, the VC's will be even happier. What they will do is look into the run rate and burn rate to measure how that $300k effects the bottom line and growth rate.
Answered 9 years ago
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