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We’re A B2B SaaS App Who Has Run Out Of Money Before Any Serious Revenue. Will We Be Able To Raise a Seed Round?

We’ve burnt through our angel round faster than expected and while the product is very, very nearly finished (as in, it does the things we discovered it needed to do, to be sold at $199 /mo), we’ve now run out of runway.

We have payment options in place, but we have insignificant revenues ($1,000 MRR).

I’m worried we can’t offer “bridge round” angel investors the valuations they’d want, but our low revenues are turning off most early stage VC’s who tell us to ‘come back in 3-6 months’. 

Too late for angel. Too early for seed.

We have rent to pay etc. and have about 2 months of money left before we’ll need to get jobs.

 

  • Your options depend on why your revenues are so low. Inability to find customers? Inability to convert them? Investors will fund you if you have a story on how their money will be used to increase that number. As in if you give me 100k it will go into X which will generate Y paying customers.

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  • Do what soon-to-be-former company did: turn into low-cost product and patent farm for a missing part of a big investor’s portfolio. You’ll get a couple more years out of things that way–although TBH, i think fail-and-fold would have been less shameful.

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  • Start looking for a buyer. Not a company or competitor likely.

    More likely on something like Flippa – there is a broader buyer universe (more than you might think) looking for developed products without revenue traction.

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  • Hi, I think you have a chance if you can show your SaaS metrics to be trending in the right way. From $1000 MRR it looks like you have 5 paid customers (at $199pm) how much did it cost to get them? (CAC) How quickly did they come on? What effect has your marketing and sales had?

    These questions are looking at weather you’ve built a scaleable money machine, or just a product that now needs a whole lot of money (and risk) spent on trying to get into the market.

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