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I think part of it is the increase in cost. I’ve spoken with quite a few VCs and Micro-Fund managers and generally been told a seed round is $250k minimum. I c

I think part of it is the increase in cost. I’ve spoken with quite a few VCs and Micro-Fund managers and generally been told a seed round is $250k minimum. I can’t see many angel investors investing that much. This is when I can relatively easily raise that

xemdetia 8y ago
I wonder if this is more accurate for what people are pursuing as businesses as well where the up front costs are just higher. Trying to start a Reddit or Facebook class site just needs a working server and some basics, where as a lot of the gig economy ideas/things-as-a-service ideas like Uber or Blue Apron need more up front capital that can't be solved by just trading sweat for marketing/growth. Not because that this is the best business idea but I can imagine a lot of proposals are trying to chase similar things. I'm not saying that those who may be considered copycats are wrong just that their upfront costs might be higher. A business starting out that is similar to an Uber or Blue Apron kills its growth if it has no money. I have also been hearing about people that are chasing WeWork as well so there is an upfront cost of facility that is almost explicitly what-not-to-do from the prior generation startup handbook: don't have an office. If an office is the product, then what? You do need a bit more money. It definitely feels like the last few years of startups are chasing very different goals that an influx of $25k (as suggested here) isn't going to help enough to solve the overhead of getting that $25k.