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by dshankar 5306 days 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

1 comments

don'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.)

Of 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.
Short 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.
Lots 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.

"superangel" funds will do $100k-ish.