Nine months ago I had an idea that would be disruptive to a very large industry (we’re talking billions of dollars spent in this industry). I created a POC and then a working prototype. Then I built a team of seasoned pros in their respective departments. No one takes a salary and I’m the only one with equity.
I backed up my gut feelings about success with hardcore research and numbers from industry sources. I conducted blind surveys and the results are exciting.
The problem is a portion of the product offering is a service back end which requires human resources, an office, etc. That puts our funding at $400K so we can move to the next level. Unfortunately there is just no other way to roll this out at a smaller scale. The upside is that our product offering scales very very well in relation to expenses. So our burn rate would be $400K annually, but doesn’t increase much as we take on customers because our design is very efficient.
So I have no idea what to do. We’re too small (zero sales) to go VC, and probably even Angel. I sought out a few Angel groups but they want to see rev – well we can’t do that without $400K. I thought about Kickstarter and feel like that’s our only real option, although lauching a KS with a $400K funding level is probably doomed from the start.
Pulling my hair out about this. Suggestions?