The idea is that you (and 1-2 other founders) should be able to live frugally on that money for 3-6 months without having to work a day job. That gives you $33

The idea is that you (and 1-2 other founders) should be able to live frugally on that money for 3-6 months without having to work a day job. That gives you $3333 per month to use for food, shelter, and misc expenses. I've seen 2bd apartments on Craigslist in the San Jose area for under $1500. 3 guys should be able to eat for $1000/mo. Add another $500 for utilities, and the rest ($333) for business expenses (hosting, Elance, etc). Ideally, that would be enough for you iron out your idea and to get a prototype working. At least that's how i picture it working out.