Raising money / Seed fund
Hi there, I’m at the early stage of building a new social commerce application with aim to launch it in UK and US. It’ll be mobile App + Web App. At the moment I fund planning & development myself. Although I’m thinking of VC firms to get seed funding. I’m still considering options however wanted to find out from some of you if it’s possible to raise around £250-£300K as seed fund and what COULD be the potential return for VC? 10%-12% of the business? More? Less? I’d need money specifically to build a solid team and put them into one office space, because at the moment I cannot afford having all the people full time, so I’m using contractors and off-shore dev team which is not ideal long term. I’d appreciate your feedback… Thanks, Mark
Im guessing that because you dont have an accurate figure for how much you NEED from a VC its unlikely that you will get funds from one.
VCs like to know that you are in control of your finances and costs. You should be able to demonstrate the need for each ££ and how it will be used effectively (with the aim of getting them a return!)
In terms of return, you will need to see what your pricing model would allow and how much of the company you are prepared to sacrifice… how much you value the company at to start with etc