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Don’t Forget Grants If You Need Early Seed Money

Startup Professionals Musings

For example, federal and state governments don’t provide grants for starting a business, paying off debts, or covering operational expenses. To the investors, it means less dilution and lower overall risk. Violations can lead to jail time. Research related tax credits and incentives.

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Don’t Forget Grants If You Need Early Seed Money

Gust

For example, federal and state governments don’t provide grants for starting a business, paying off debts, or covering operational expenses. To the investors, it means less dilution and lower overall risk. Violations can lead to jail time. Research related tax credits and incentives.

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Should Startups Care About Profitability?

Both Sides of the Table

They both raised angel / seed money of $1.5 million to fund operations in their first year of operations. After all, they doubled their operating costs when they weren’t even profitable. They used the money to hire a bigger tech team so they could roll out their second product line. Again, it depends.

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VC Seed Funding is Dead, Long Live VC Seed Funding!

Both Sides of the Table

.&# And I think this line of thinking has started to become conventional wisdom as outlined in Chris Dixon’s excellent blog post saying that you need to be careful raising seed money from a large VC fund. I do think you need to be careful with funds that have done 20-30 seeds deals in fairly rapid succession.

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How to Fund a Startup

www.paulgraham.com

It wasnt because they werent accredited investors that I didntask my parents for seed money, though. When we were starting Viaweb,I didnt know about the concept of an accredited investor, anddidnt stop to think about the value of investors connections.The reason I didnt take money from my parents was that I didntwant them to lose it.

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How to Start a Startup

www.paulgraham.com

But this is just the kindthat tends to be open source: operating systems, programminglanguages, editors, and so on. So if youre developing technologyfor money, youre probably not going to be developing it for peoplelike you. Usually you get seed money from individual rich people called"angels." This is calledseed capital.

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