Questions about capitalization


1

We have created a product which to date has been privately funded. From conceptual to working prototype with more success than expected. It is a B2B product and industry insiders see legitimacy and value for this product but this a traders business and not a well known environment for the general public. This is a product that we have been told will revolutionize the landscape of trade much like level 3 trading changed day trading methodology. This is very relevant to how stockbrokers trade and how unless you are in this business it would be foreign to most outsiders.

With this said, on the outside we are in a 370b global electronics manufacturing market and our product in truth protects shareholder profitability and counter acts against counterfeiting.

Here is our dilemma, we inadequately analyzed the need and the amount of resource needed to properly run this business. Hence the need for capitalization. To compound matters we have won exclusive distribution contracts from global EMS firms and with a skeleton staff we cannot properly go do expos and road shows for start up although we see a need.

Here is our question, should we find a high profile investment connected individual to get behind this product to go find us expansion capital OR abandon all the good we have created to go full bore into the investment sector ourselves? This obviously could affect our customer retention adversely though.

Thank you for and insight, it is always appreciated
XSDirect Team

Funding

asked Oct 17 '10 at 00:09
Blank
Xs Direct
275 points
Get up to $750K in working capital to finance your business: Clarify Capital Business Loans

2 Answers


1

From your responses, it sounds like one approach would be to find a logistics partner. You could talk to someone like UPS about how they could help you navigate the logistics / "bricks and mortar" side of your business.

Apart from delivering packages, UPS can get deeply involved in the fulfillment side of any business.

They may also have suggestions as to how to capitalize what you need to do.

answered May 25 '11 at 23:15
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Peter K.
377 points

0

If you have orders then you can find a factor and get a loan based on that. Not sure though from your question.

Luck

answered Oct 27 '10 at 01:22
Blank
John Bogrand
2,210 points
  • I suppose we must explain by saying the the technology is based on servers in the US but the support side of the operation is a global one and the demand outweighs our ability. Do not know if this makes sense. We created a real time exchange for global mfr's to trade their overstock. So in essence McDonalds Hong Kong can sell directly to Wendy's in Sweden unimpeded. We come in and manage the after sale with inspection. authentication and logistics. This is the side of the business we need help with. – Xs Direct 13 years ago
  • If you have contracts lined up and orders lined up that equates to revenue then you have something that can be converted to cash and can create attraction for investors. – John Bogrand 13 years ago
  • We have contracts for exclusive distribution but require capitalization to execute them. We are in a global marketplace and need to create support services in the field. The technology is a trading platform but the brick and mortar part of the business is what we seek investment for. maybe we should just post the plan. Thank you for your kind input. – Xs Direct 13 years ago

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