I am trying to raise a small round $300k to 500k at maybe 1.2M to 2M for our house cleaning marketplace startup doing $100K gross monthly, 2x from last year. What is the best way to reach out to angel investors and or family offices? I think the round is too small for VCs, but would like to get Angels into it. Any ideas on finding Angel investors? Should I buy a list and hit the phones? Let me know thoughts and tips. Thank you.
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200% annual growth with 22% margins is unlikely to be venture back able. That does not mean it’s not a great business that can get to millions in ebitda, only that you should avoid spinning your wheels with institutional VCs with your current metrics. Angels are different, and you could well find someone in your city down to be part of this.
You should be focusing on your core operations & pass this to a third party.
Either hire an intern, or try services like Pitchbook, Marquee Equity, Fundable, etc.
I may be ignorant here, but you’re making $100k in revenue a month and need $300k in seed? That seems like a bad idea. It’s probably cheaper at this point to just get a loan without giving up equity. How much is net on 100k and why do you need an investor?
AngelList can be a good place for leads
Also: try googling " angel investor group" or “…angel group”
Also look for " alumni angel investors" etc
Why not just contact VCs directly and pitch them. This seems like an opportunity they might be interested in and you will probably need more funding down the line. I just read an article about marketplaces needing to reach critical mass before scaling. Have you already achieved this in your market?
Ya I am trying a new approach to get in the door. Emails and calls.
Yeah keep trying, I’ve seen it take hundreds of investors before you find the right few. If you have traction and good revenue you should get some interest somewhere.
Why not just contact VCs directly and pitch them. This seems like an opportunity they might be interested in and you will probably need more funding down the line. I just read an article about marketplaces needing to reach critical mass before scaling. Have you already achieved this in your market?
You say you are doing 100k gross per month and that you have been in business now for at least two years?
If you are generating that kind of cash flow are you margins horrible? You should easily be able to find capital between freind s and family if you are creating that kind of revenue.
You said “at maybe a 1.2M to 2M” is that the valuation you are wanting to raise 300-500k on?
You should know exactly how much you want to raise not a variable of a number.
Please clarify this more and I can help you with further advice. Valuation of the raise, how much you want to raise, being in revenue and many other factors completely change what type of investor you should pursue, if you even need to pursue and investor at all.
Thanks for the input. $100K is gross revenue. Margins are like 21.5% after stripe fees.
Yes well we plan on giving away 20% at this stage. So 300K is minimum we need to raise which would be at 1.2M pre-money, 500K would give us flexibility to add more cities for expansion. I’d love advice at this stage too.
You should be focusing on your core operations & pass this to a third party.
Either hire an intern, or try services like Pitchbook, Marquee Equity, Fundable, etc.