|We started developing our product about 10 months ago, and have seen steadily increasing monthly revenue since we took on our first paying customer in June. We made about $2500 in recurring revenue last month, but we would like my co-founder to be able to quit his job and come on full-time.|
Our model is based on direct sales with large customers. My partner is company's salesman and he believes that if he were selling full-time (he sells only on his lunches at the day job right now) we would be profitable with both of us working full-time in three months.
We have applied for an SBA loan to cover part of our costs for six months of operation and have decided to raise a "friends and family" round for the rest of it. We've never raised any funding of any kind, so we're hoping that those who have experienced a F&F round on HN could give us some insight. We are currently incorporated as an S-Corp.
How did you determine your valuation before a F&F round? This is one of our biggest concerns.
Because a F&F round is pretty small, how did you minimize legal costs?
What did you tell potential F&F investors about the opportunity? Is there anything that you're REQUIRED to tell them?
How much of your company did you give up in your F&F round?
Feel free to include any resources that you found useful when you were doing your F&F round.