Had a relatively last few days. The forecast for RedStores has been validated. Gerry and I spent time to review our assumptions and model. The forecast is huge and yet no matter how conservative and pessimistic we try to be it’s giving us really big valuation in year 3+.
We spent some time putting in large chunks of cash for broad marketing which given the spent don’t show impact on growth in first few Q – so it’s good buffer for various unexpected.
Bottom Line : the plan is good, returns are good, pitch is good. Solid.
So, all that is left is to raise funds and then execute, execute and execute.
I’m off to US today via Frankfurt – so will be up in the air for sometime – and will brainstorm VC raising plan. We will be going after $3mm and if have to will accept up to $5mm if the terms are good. In this market and with what we have done this year and our reputation I’m guessing I will close this round by end of this year. Meanwhile every day we are making progress so as we keep going, the risk profile will go down and down – giving us a better valuation.
Although I’m now facing some personal issues I’m off on the health retreat with peace as pretty much all legal moves are now or autopilot and require little of my input. When you prepare for the unexpected, when unexpected comes it becomes easy to handle.