We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co
Funding for an expensive startup
I am part of a team aiming to obtain funding for an exciting yet very expensive startup.
The startup needs substantial amount of money: 5+ million to get everything ready and another 3 million for opening and final setup. All these before we even starts making money. On the upside, based on our analysis we believe we can make 50+ million revenue with about 25 million profit each year with high potential on expansions.
The business is an educational/entertainment centre but with some interesting novelties. Think of it as a novel educational Arcade game style business.
So we are at a stage to start looking for funding. We want advice on how to approach this. Things we need to consider when going for such a big amount (e.g., usually process, time, stages,etc)? What percentage of the business should we expect?
Assume that we have the expertise and knowledge on the business/idea, but not on funding or the way investors/funders go about funding such a business. Also assume we have done a good market analysis, feasibility, costing, etc and we have good evidence for above numbers.
The problem is that we are not building a product to start small and gradually go bigger. Instead we are building a new educational/fun centre with specialized machines, so we need the entire funding to setup everything and get the business started.
Thanks a lot. Any help/advise would be great.