SME loan plattform - prerevenue startup - financing

May 01, 2020

by a professional from The University of Chicago - Booth School of Business in Rye, NY, USA

I am working with a startup. We developed a platform for SME loans.
The platform is an end-to-end capability working both in a corona virus environment but strive to provide efficiency and better customer experience in a "normal" macroeconomic environment.
The product is ready but need $3m to launch the pilot and finance###-###-#### activities.
Any suggestions on where to get the financing? VC are interested but want to see clients and revenue first.

Reply by a searcher
from Duke University in Mountain View, CA, USA

With a pre-revenue startup, you will likely need seed or angel funding. Perhaps your VCs can refer you to investors who focus/specialize in that area? I do not know of any traditional financing options that would be open to you otherwise. You may want to consider an incubator too (YCombinator, TechStars etc,), though I believe they would likely provide investment in the low six figure range.

Reply by a searcher
from Harvard University in Arlington, MA, USA

You might also consider getting a strategic partner or two onboard. Perhaps your product can be pivoted to help any number of banks that are totally buried by PPP loans to help them automated and be more efficient? Working with a local bank can help you both in terms of client leads and credibility with investors.

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