Really cool product! Our company is in this world (but on the optics side) and I have had to raise capital on multiple rounds over the last several years. So will try to give you the straight scoop.

1. Having a cool product (which you do!) is a great start, lots of folks don't get this far.
2. To raise capital, you will need to know the following cold:
a. What is your actual market look like? How many of these realistically could you sell?
b. What are your costs? Wholesale price? Path to market?
c. Do you have orders now? Gun shops willing to stock / sell? If not, why not?
d. How will these be manufactured? What costs needed for manufacturing?
e. Are these patented? If not, have you sold 1? (That will affect your ability to patent)
f. You are entering a VERY crowded field, what makes you stand out? Why not just go license to MP or any of the other furniture makers then go make the next great product?
g. How much do you have in it now? Hard dollars not soft dollars
h. Is there anyone on your management team with experience (successful) with this kind of product launch?
3. Are you going to SHOT Show next week? If not, why not since it is the biggest trade show in this industry by far?

Cold truths:

1. Investors in Austin (and a lot of early stage investors wherever they are) look for scalability. You are targeting a niche product (it isn't necessary for the operation of the weapon) in a crowded space. That is tough sledding
2. You absolutely need to have multiple letters from law enforcement agencies, DoD program managers, gun store owners, etc that say they want to buy your product. Doesn't cost much if anything to visit with a ton of them. If they don't bite, you have bigger issues.
3. Angel groups may be an option if you can show sufficient market size and have the letters from potential buyers. Without it you need friends and family until you can get those orders or letters
4. Visit with aglaw or someone similar. If you plan on raising money beyond friends and family, you need to form in Delaware and have a good startup lawyer. Lots of opinions on this I am sure but having raised 8 rounds over last few years, doing this upfront saves time and money later as professional investors outside of Texas will ask for it.
5. Go get some sales or letters from at least 5 buyers
6. See #5
7. See #5
8. See #5
9. See #5
10. See #5

CTAN has regular meetings that you can attend and watch the interaction with other companies and investors. They are a wonderful resource for early stage companies.

Good luck. Few things harder in the business world than what you are doing but very few more rewarding when you get it to work.

Gig em

Um, Hi.

email me:

owner@texianfirearms.com

Ags,

Thanks for all your comments and recommendations.

Wanted to give a heads up that we've been selected by the Aggie Angel Network to give a presentation at their May 5 pitch meeting.

I assume several of the B & I posters are members of AAN. Some may even be at the meeting this Friday. Look forward to getting a chance to meet those in attendance.

Thanks,

Chad Lee '87