[RogueCaliISO]

I have a client who is looking for financing against their pending purchase orders.


Below is a note from our client:

"We have closed our Series A-1 round having raised a total of $2.61 million at a $12 million pre-money valuation ($2.4m in cash and $200k in services), which leaves us now at a $14.61 million post-money valuation. We intend to open our Series A-2 round at a higher valuation starting in

August 2016, currently planned at $20m -$22m valuation, justified by our current $14.61m post-money valuation plus $6.6m in demand pipeline and a lower risk profile having considerably (but not totally) mitigated the market adoption and business execution risks. If you wish to participate in the upcoming round or know of someone who might, please let us know.

As discussed, we would consider a debt structure or a hybrid equity/debt structure, but we would envision the debt package as follows:
• USD$20 million
• A reasonable interest rate
• Interest only payments for 7 years followed by a balloon payment of $20 million at the end of the term.
• Secured by 70% of the profits of the first 10,000 units (10k units x $5000 gross profit each = $50m in profits x 70% = $35 million, which is sufficient to cover a $20m debt package).
• No pre-payment penalty.
We are not locked into this structure and would consider any other creative and mutually beneficial structure you wish to provide, but let us know quickly as we have the first investors for our next round (which opens in August) already lined up."

[AlexSMF]

I have a client who is looking for financing against their pending purchase orders.


Below is a note from our client:

"We have closed our Series A-1 round having raised a total of $2.61 million at a $12 million pre-money valuation ($2.4m in cash and $200k in services), which leaves us now at a $14.61 million post-money valuation. We intend to open our Series A-2 round at a higher valuation starting in

August 2016, currently planned at $20m -$22m valuation, justified by our current $14.61m post-money valuation plus $6.6m in demand pipeline and a lower risk profile having considerably (but not totally) mitigated the market adoption and business execution risks. If you wish to participate in the upcoming round or know of someone who might, please let us know.

As discussed, we would consider a debt structure or a hybrid equity/debt structure, but we would envision the debt package as follows:
• USD$20 million
• A reasonable interest rate
• Interest only payments for 7 years followed by a balloon payment of $20 million at the end of the term.
• Secured by 70% of the profits of the first 10,000 units (10k units x $5000 gross profit each = $50m in profits x 70% = $35 million, which is sufficient to cover a $20m debt package).
• No pre-payment penalty.
We are not locked into this structure and would consider any other creative and mutually beneficial structure you wish to provide, but let us know quickly as we have the first investors for our next round (which opens in August) already lined up."

Dont know of any companies in this space that would do something like this but I may be able to help your client through a Venture Capital firm depending on what the client does. Shoot me a PM if you wish to discuss further.

-Alex