Pre-Revenue Govt Contractor seeking $3M equity/debt investment

searcher profile

April 16, 2022

by a searcher from University of Southern California - Marshall School of Business in Tampa, FL 33602, USA

Feel free to reach out to redacted if you or anyone you know might be interested.
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Unique situation. The Company is an intelligence firm, The government goes to them to “find things”. They have a proprietary process of locating people, items etc. that the government can’t.

They've turned that proprietary manual process into a technology and just launched the first version of it. The government and many other investors are ready to sign deals to use it, but it’s going to take another 12 months to actually finalize the technology and they’ll need to hire some smart tech people to get it done.

While they wait for government money, they need a bridge loan, or an equity/debt vehicle to fund them. Somewhere close to $3M. The team has 100% equity in the business and are willing to forfeit some in order to get this done. There is an investor video I can share. In a sense it’s pre-revenue because the technology component has no revenue tied to it yet.

They’re in the southeast and looking for a local investor and someone to help strategically grow the business however they’ll look outside the area if necessary. The technology can be used for commercial applications as well, not just government work.

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commentor profile
Reply by a lender
from McGill University in Greenwich, CT, USA
So the technology they are rolling out has no revenue tied to it - but does the company have any other sort of revenues? If so, my firm could take a look at it. We provide unsecured, non-dilutive debt financing so they wouldn't have to give up any equity or collateralize assets (I assume they would be asset-light anyways). Please email me at redacted if you want to discuss! Thanks!
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Reply by a searcher
from Massachusetts Institute of Technology in Boston, MA, USA
Suggest performing dilligence that validates the business model that the company is pursuing. In a monopsony business, the customer has a strange way of dictating their business model on you.
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