Investment Levels
Investment Levels & Terms
Non-equity and partial equity options ($200K - $500K)
Growth Accelerator
Terms
Use of Funds
AI underwriting system, mobile app v2
Paid ads, content marketing, partnerships
Lender partnerships, B2B sales team
Cloud infrastructure, compliance, legal
Buffer for unexpected expenses
Key Milestones
- Reach $500K ARR (from current $0)
- 10K+ active users
- Launch AI underwriting system
- Partner with 5+ lenders
Market Expansion
Terms
Use of Funds
Advanced AI features, API platform, integrations
Multi-channel campaigns, influencer partnerships
Expand B2B sales, enterprise deals
2 engineers, 1 marketer, 1 sales rep
Compliance, security, cloud scaling
Key Milestones
- Reach $1.5M ARR
- 30K+ active users
- Launch B2B enterprise tier
- Partner with 10+ lenders
- Break even on contribution margin
Scale & Profitability
Terms
Use of Funds
Full AI suite, advanced analytics, white-label platform
National campaigns, PR, brand partnerships
Build 5-person sales team, channel partners
3 engineers, 2 marketers, 1 data scientist
SOC 2 compliance, enterprise security
Contingency fund
Key Milestones
- Reach $3M ARR
- 50K+ active users
- Launch white-label SaaS product
- Partner with 20+ lenders
- Achieve profitability on EBITDA
Market Leadership
Terms
Use of Funds
Enterprise features, API marketplace, predictive analytics
Multi-channel acquisition, brand building, events
10-person sales org, enterprise sales
5 engineers, 2 marketers, 2 salespeople, 1 CFO
SOC 2, audit prep, legal, finance systems
Growth buffer
Key Milestones
- Reach $5M ARR
- 100K+ active users
- Launch API marketplace
- Partner with 30+ lenders
- Profitable on cash flow basis
- Prepare for Series A or acquisition
| Factor | $200K | $300K | $400K | $500K |
|---|---|---|---|---|
| Dilution (if equity) | 2.5% | 3.5% | 4.5% | 5% (max) |
| Valuation | $8M | $8.5M | $9M | $10M |
| Timeline to Deploy | 6 months | 9 months | 12 months | 15 months |
| Team Size Growth | 3-5 people | 5-8 people | 8-12 people | 12-15 people |
| Target ARR (12mo) | $500K | $1.5M | $3M | $5M |
| Expected ROI Timeline | 3-4 years | 3-4 years | 3-5 years | 3-5 years |
| Governance Rights | Observer | Observer + Info | Board Seat | Board Seat + Veto |
Zero Dilution
Founder retains 100% equity ownership
Revenue-Aligned
Payments scale with business performance
No Personal Guarantee
Business-only obligation
Faster to Close
2-3 weeks vs 2-3 months for equity
Strategic Partnership
Investor brings expertise, network, and guidance
Minimal Dilution
5% max, founder retains 95%+
No Repayment Pressure
Capital for growth, not debt service
Credibility Signal
Easier to raise Series A with investor backing
Recommended Strategy
Phase 1 (Now - 6 months): Start with $200K Revenue-Based Financing to validate product-market fit with zero dilution.
Phase 2 (6-12 months): Once at $500K+ ARR, raise $300K-$400K with 3.5-4.5% equity from strategic investor for growth acceleration.
Phase 3 (12-24 months): At $2M+ ARR, raise Series A ($3M-$5M) to scale to IPO or acquisition.
Total Dilution: ~8-12% through Series A, retaining 88-92% founder equity vs 30-35% at IPO target