Early-Stage Startup Funding
The cluster focuses on discussions about appropriate investment amounts, valuations, and terms for seed-stage startups, including references to accelerators like YC and 500 Startups, minimum viable funding levels, and comparisons to bootstrapping.
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You are on forum about VC-funded startups. You can get 50M if you really want and what you're saying is true
500 Startups offers $100,000 at a $2M valuation (i.e. 5%). Cheaper than $150,000 at $1M (i.e. 15%).
They don’t know at onset if a company deserves that much money. $25k is enough to see what people can accomplish in 3 months - maybe they take less equity. Most companies either have wrong leaders, wrong market, wrong skills, wrong business ideas but big dreams. That amount is enough to filter through the above.
400k seems a bit hyperbolic for early stage startups
You'll have to raise more money, of course. Currently, all YC companies are offered $150k automatically and companies that look promising to investors are able to raise a lot more. I believe it's possible to get most good ideas to the stage of "promising" on $170k.
Invest. 150K is a sizeable amount to fund a couple of early stage founders and help them succeed, given your track record.
$20k is not worth bothering for a VC (if that is all you need, get a bank loan or "FFF" round - friends, family & fools). $1m might.
A million investment doesn't sound regular. Basically if you raise a mill for 33% you value yourself at $2m. That is without PMF or revenue!This seems like pulling a fast one on VCs if you then pivot to bootstrapping a nice family business. That ain't why they threw $1m at your PowerPoint.In "dragons den" style traditional business they'd offer you $50k for 50% at that stage. Maybe.
If your early enough (like seed stage), it's like $300 for %5.
Until a startup is obviously a billion-dollar entity (reasonably on track towards $100M+ ARR), it varies greatly based upon;- Growth metrics (MoM, YoY)- Following, absolute metrics- How these metrics compare to others in your vertical- Business thesis- Total market size (needs to be gigantic)- Strength of vision, ability to execute- Ability to convince others of said vision- Ability to attract, recruit and retain talent (investors, employees)- Many more magical and uns