3 ms·
I'm wondering why so many of them are looking for $200K or less. $200K is more of a friends and family sized round- it's very rarely enough to get a startup to
by il 14y ago
I'm wondering why so many of them are looking for $200K or less. $200K is more of a friends and family sized round- it's very rarely enough to get a startup to Series A or profitability.
It seems like saying you're raising a small amount sends a negative signal that you're not interested in building a big company to investors.
- mtr 14y agoFor startups based outside of North America $200k goes much further than those based within. And correspondingly $200k is harder to raise from friends/family.
- jmelul 14y agoYeah, it is a tricky subject because if you are raising money down here you have to adapt to the local environment. There is definitely not as much money flowing around and the "normal" seed rounds are more in the 100k to 750k range which is a lot less than what it is in the USA. Down here, investors are more risk averse and less "smart" so they are more comfortable with smaller investment steps, especially in the early stages. In addition, like @mtr mentioned, the money goes much further down here. The cost of living is around 4 times cheaper and the cost of hiring developers is getting close to 3 times cheaper and there is a lot less competition for talent. The good thing is that they have the same amazing climate as Cali down in Chile ;) That said, you are definitely right about the signal it sends. I guess the pitch and the fundraising campaign has to be country sensitive in order to be more effective.