[ahoog42]

This is exactly how we built viaForensics in 2009. For the first five years, we performed mobile forensic investigations and gave trainings based on the Android and iOS forensic books we wrote. We were able to self fund software development for the first five years. When we moved from forensics to mobile app security, we required more capital to build our automated software which led to our Series A.

Having an established business with customers in revenue, obviously significantly helps in the fundraising process and evaluation. The other huge advantage is you can benefit significantly from the Qualified Small Business Stock statute which provide an exemption/shield on federal taxes when you sell that is the _greater of_ either $10m or 10x times your valuation at the time of funding.