Dream Local Digital, a digital marketing agency in Rockland, is preparing to close an equity round of at least $100,000, according to its founder, Shannon Kinney.
The company will use the funds to ramp up sales and marketing efforts. Kinney said $100,000 has been committed in the round with another $30,000 to $50,000 “soft circled.”
Kinney said revenue is expected to be between $2.5 million and $3.2 million this year, trending towards $5 million within 18 months of January 2018.
“We have had eight months of beating budget and projections, including two record setting months,” she said.
The company had previously raised nearly $1 million in convertible debt over the course of several seed rounds since 2013. It recently completed transitioning those convertible note holders to equity stakeholders, according to a filing with the SEC. Ten investors representing $997,027 in debt had been converted to equity as part of the “conversion transaction,” according to the filing. Those early investors are Maine Venture Fund, five members of Maine Angels, and three independent investors, according to Kinney.
“When we first raised capital in 2013, it was too early to place a valuation on the company that was real, and so we began as convertible debt with interest payments. This year, as the company continues it’s strong growth, we converted the investors to shareholders. Very exciting time for all involved,” Kinney said.