Well, typically accelerators take a percentage of the company in return for the money they offer. Post the terms that they gave you here and we'll help review it. Of course, make sure that you are not bound by some NDA or confidentiality agreement first :)
Just based on what you posted, I want to encourage you to consider the terms. $20k of seed is not significant enough imo to take such a large stake in the company.
Your seed stage needs to provide the founders enough income/resources that they can and want to do this full time - along with have some ability to hire out additional jobs over enough time (3+ months) to get an A round or have strong revenue producing customers. In the case that you need to hire an additional developer for 3 months, you'd be out of your $20k seed money.
Thank you, I am gonna look through terms precisely, just wondering how it works/worked for other companies, cause I cant really find ANY info what happens if you fail in terms of seed capital.
And yeah, 15% is high but they say it can be "washed" during next round of funding
Appeciate your information!
Comments
Well, typically accelerators take a percentage of the company in return for the money they offer. Post the terms that they gave you here and we'll help review it. Of course, make sure that you are not bound by some NDA or confidentiality agreement first :)
its 15% equity and yeah, didnt have a look at official terms yet, but I guess my question is more generalized right now, you know
Just based on what you posted, I want to encourage you to consider the terms. $20k of seed is not significant enough imo to take such a large stake in the company.
Your seed stage needs to provide the founders enough income/resources that they can and want to do this full time - along with have some ability to hire out additional jobs over enough time (3+ months) to get an A round or have strong revenue producing customers. In the case that you need to hire an additional developer for 3 months, you'd be out of your $20k seed money.
Thank you, I am gonna look through terms precisely, just wondering how it works/worked for other companies, cause I cant really find ANY info what happens if you fail in terms of seed capital.
And yeah, 15% is high but they say it can be "washed" during next round of funding Appeciate your information!