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The Pre-Seed FAQ

K9 Ventures

Unless every aspect of product development is covered by founders who are only receiving equity, there are other parts of building a product that will require hiring highly qualified people. Q: How are most Pre-Seed deals structured? Engineering Capital. It is no longer cheap to start a software company.

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Should You Co-Found Your Company With a Software Development Shop (2 of 2)?

David Teten

They’re well aware of the conventional VC bias against funding companies which externally develop their technology, but they do have relevant skills. When the value of the studio’s participation is effectively a commodity (like office space, engineering, capital, etc), the equation flips and should be to the advantage of the founders.