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I'd counter that free tip with a dose of the real world. That less then $50,000 is rent and payroll. If I'm a software start-up with a < 10 person team and I'm
by jonesb6 11y ago
I'd counter that free tip with a dose of the real world. That less then $50,000 is rent and payroll.
If I'm a software start-up with a < 10 person team and I'm six months into a six month development cycle, and oh shit we miscalculated the significance of feature X, which has now revealed itself to be our greatest value proposition and requires 2 months more development time to be fleshed out (mini-pivot I suppose) in order to be sold to customers.. I need that 10k, 20k, 50k just to push the product out the door.
Sure I'm going to tell you all about our sales projections, remember when you asked to hear them in the meeting, and yes the projections will be optimistic (but still fundamentally sound). No I will not go into too much depth about all the reasons we pushed launch back two months (the meeting would go past the ~30 minutes allotted and you would likely feel bored towards the end of the meeting.. not good).
I think both investors and founders are products of our current environment. We both ride the roller coaster, yet I feel like founders often get portrayed as the dishonest ones (I'm guessing it's because we don't hold the money). Maybe I would just like to feel more representation in this thread.
- hiddencost 11y agoCheap engineers you've got there.
- jonesb6 11y agoYup, it sucks. And it's become par for the course. My biggest fear is that a downturn in VC will only cause more of it.
- jacquesm 11y ago10 to 250k is what a single angel will invest. Usually these team up for a larger seed round depending on their ability to fund. Sure, $50K is peanuts, but then again, compare it to what YC offers and it's actually not all that weird. Usually seed funds do not get you enough money to go on a hiring spree and collect your favorite list of valley talent. But it might just be enough to get you to the point where you can demo your stuff and get a larger round. Essentially that's all that seed funding is, a way to get in front of a group of larger investors after doing some more product development. There are dishonest people both on the founders side and on the investors side, no exclusivity there for either group. Rare to see a career based on dishonesty last very long, word definitely gets around.