Posted by DecisionTime on 2013-06-17
For my new venture I need to raise $1.5M - $2M to get to profitability. The business is a local NYC retail opportunity leading to ecommerce in 2-3 years (dictated by pace of certain legal changes). It could be a great cash business or scaled with more investment to shoot for something huge.
I've found a bank that has made similarly or larger sized loans to restaurants and other businesses in NYC and can get an intro from a multiple-time successful loan recipient of the bank. I haven't started fundraising yet but have been planning on angel funding, have 250K committed so far, and am confident I can raise what's needed. Should I pursue both these options at once? Is a business loan I'm personally on the hook for, and a shorter-term plan to be more of a 'family' business a good idea versus raising money from angels, on a path to venture funding, with the goal of scaling asap? I'm confident the business can make money and be profitable if I go the loan route. I also imagine I could go the angel/vc route later if I start with the loan. Any ideas or thoughts or advice would be welcome.PRIVATE: Members Only