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Since you're meeting VCs, I will assume you're raising money. 1.) Properly communicate how much money you are raising and why. Understand how much money they n
by dshankar 15y ago
Since you're meeting VCs, I will assume you're raising money.
1.) Properly communicate how much money you are raising and why. Understand how much money they normally invest in a startup (don't ask for $5k from someone that normally invests $100k). Figure out how much money you need to operate for 12-18 months or more. This should be primarily based on expected team size & team growth. $10k per head per month is a good estimate (on the low end). A team of six needs approximately $750k for a year.
2.) Focus on the team if you're seed stage
3.) Have a prototype of what you're building
4.) Understand your market well
- cperciva 15y agodon't ask for $5k from someone that normally invests $100k Are there VCs which go as small as $100k? (Honest question here -- all I typically see announced is the sizes of rounds and I don't know how large or small the individual funders in those rounds are.)
- dylangs1030 15y agoOf course. A lot of the rounds that get most attention are the larger ones - they attracted money, so they attract attention. But practically speaking, VC's will invest somewhere between the highest "safe" gamble and the lowest profitable investment.
- mayop100 15y agoShort answer - no. Some will participate in seed rounds if they intend to follow up in a series A. This is rare though, and $100k even at the seed stage is tiny for a VC.
- joshu 15y ago"superangel" funds will do $100k-ish.
- idanb 15y agoLots of large VCs will invest as little as $100K to both get in for the next round as well as provide the team with resources they may need that are non-monetary, some will even take on advisory roles. Investing isn't about the amount at the seed stage. An investor at the seed stage gets a whole lot more equity for their buck earlier on, so they should provide value over that of what the money will get you.