Ask HN: Anyone would be interested in $10K funding for development?
5 comments
I hope the following doesn't sound pontifical: Even if this is legit, USD 10T would hardly be enough to cover the life expenses of a single founder in an average western country (not super-expensive like London, NYC or Swiss) for mabye three months. Or a team of three for one month.
You should fund at the order of USD 100T to feed a small founder team for one year to make an impact.
You should fund at the order of USD 100T to feed a small founder team for one year to make an impact.
That's for development and not for living expenses
$10k for 6% of a company should be criminal.
Why?
Because 10k is a drop in the bucket for most startups. Expenses generally far exceed that, especially at the beginning.
Further, 6% is almost 1/10th of the entire company in terms of ownership.
It'd be like buying a permanent seat in someone's minivan, even if they replace the minivan for a lamborghini minivan in the future, for about $100 one time fee and a vague promise of "we'll help you set goals on how to get that lamborghini!"
It's a nonsense offer.
Further, 6% is almost 1/10th of the entire company in terms of ownership.
It'd be like buying a permanent seat in someone's minivan, even if they replace the minivan for a lamborghini minivan in the future, for about $100 one time fee and a vague promise of "we'll help you set goals on how to get that lamborghini!"
It's a nonsense offer.
Exactly.
Y Combinator's standard terms are $125k for 7% with an established/trusted brand and deep investor network.
No one should be duped into giving up the same level of ownership for 4% of the capital and (presumably) a less well-known brand.
Y Combinator's standard terms are $125k for 7% with an established/trusted brand and deep investor network.
No one should be duped into giving up the same level of ownership for 4% of the capital and (presumably) a less well-known brand.
Try to get into YC without an MVP. Again, it starts from 1% not 4%. 10k should be enough to build an MVP and with MVP and traction you would have much better chances of getting into YC. Indeed, we are looking to partner with YC.
You have a right to express your opinion, but your comment is misleading:
1) 6% is not almost 1/10. It's almost 1/17
2) It starts with 1% which is 1/100
3) 10k is enough to build an MVP in most cases
4) The "seat" is going to become smaller and smaller as you issue more shares for options and new investors
1) 6% is not almost 1/10. It's almost 1/17
2) It starts with 1% which is 1/100
3) 10k is enough to build an MVP in most cases
4) The "seat" is going to become smaller and smaller as you issue more shares for options and new investors
1) Either way, for the money, no.
2) I understand how percentages work.
3) No, it's not. Not when there's living expenses and a pandemic going on.
4) Yes, exactly why your offer is nonsense.
We are launching a pilot program to provide up to $10000 funding for exceptional early stage startups. We are looking for 1-6% of equity in exchange.
You will have:
- a personal mentor who will help to set goals and keep track of your progress
- advisors from successful entrepreneurs and technical experts
- intros
- follow up funding for great performers
Selection criteria:
- founder(s)
- idea
- traction
If you are interested, please send your pitch deck along with a motivational letter to [email protected]
We commit to non-disclosure of any information shared with us.