When vetting a company for funding, Florida Funders considers the company’s current customers as well as the overall potential customer base for the company’s product or service. While paying customers are encouraging to have by the time a company seeks funding, they are not required if the company has established proof-of-concept or developed and unique and novel product or service. This proof-of-concept will help establish whether the company is able to sell beyond early adopters and gain more mainstream customers. It is difficult for early-stage companies to grow beyond a few million dollars in revenue if it cannot sell to these mainstream customers. In addition to acquiring customers, the company needs to retain customers to ultimately be successful and this is based on delivering a strong value-proposition relative to a company’s product/service price.
Management should be able to articulate why its product/service is superior to existing solutions and how the company is going to deliver this message to potential customers and gain market share. In addition, management should have a detailed plan or business model that is going to allow them to acquire their intended customers affordably (relative to their life-time value).