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SALMA IT Software consultancy and solutions venture raised a 150 thousand pond in 2011 from family and friends, and they become successful companies in terms

SALMA IT Software consultancy and solutions venture raised a 150 thousand pond in 2011 from family and friends, and they become successful companies in terms of IT, data engineering. with anticipating 120% growth since 2015, they going to enter a Large agreement worth 1,000,000 ponds with a famous financial service sector. The firm requires a 250,000 pond working capital in 12 months to be able to fund this expansion. Since the management of the company is price sensitive and do not want to borrow excessive money that could cost them higher. Therefore firms require to create bridge financing depend on the contract to link the shortage of cash flow gap with working capital prior to an equity fund. Founding a profitable business usually looks attractive to investors, we recommend SALMA to choose the Venture Capitalism, Equity-Based Finding and cash line for Financing options base on that please discuss the blow question.

1)Consider and explain the valuation issues associated with the chosen financing option

2)Compare financing option to alternative financial options at the same point in the ventures progressions

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