We have a small insurance software startup; making money ($40k per month); positive cash flow; money in bank ($250k). We make insured payment portals, IVR's, and apps that work as a platform for auto insurance companies. We have tried in the past to get our marketing team up and selling and we have failed. We ended up spending about $100k with little results other than goodwill. We have some cash to spend but feel that we cant take another risk on a losing team. We could also REALLY use our funds on our devs and make an impact on our products. We are stuck at a crossroads of self-funding, seeking funding (have no clue from whom) and finding a larger company to be acquired by (we have a few that have been sniffing). With a good sales staff getting our products to middle tier auto insurance companies we feel that we can grow fairly quickly. With a small ($2 million) investment we can grow much faster with more products. Thoughts?
If funding is not an issue then form an advisory broad with people from your industry especially those who understand your customers, competitors and other stakeholders. The Advisory Board lends credibility to your business and often bring a very helpful network with them.
If you need capital raise - up $500 K - from Angel investors who also bring marketing and industry experience with them. I'm a member of Cornerstone Angels in Chicago and we provide this kind of funding often with expert help. One caveat: You have to want the advice and help or this exercise is meaningless.
Good luck
Answered 9 years ago
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