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I would say most of them need money so they can quit their day job(s) and focus on building the product.
by redspark 14y ago
I would say most of them need money so they can quit their day job(s) and focus on building the product.
- rickymm3 14y agoThanks for the reply. So, to clarify, raised capital goes into the pockets of the founders? There is not typically a contract involved that requires company registration (i.e. incorporated), or suggestion on where to put the money? Thanks again!
- redspark 14y agoI have not raised money myself, but everyone I know who raised a seed round, incorporating was one of the stipulations. There is always a contract (term sheet), which spells out certain requirements. But typically the bulk of the money raised, goes toward supporting the founders as they build/launch the product.