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.