Re:Anatomy of a Seed Round During Covid-19
by enra on Saturday September 12, 2020 @08:27PM
(#24457148)
You want to get friends, family or certain operators to spend time and help the company. Lot of individuals don't have $50k-100k to invest, but they could invest $5k-20k and that way have skin in the game.
As a founder/company, doesn't really matter to me if a person invests $5k vs $50k if they are just engaged and helpful. For example someone who really understand sales and can teach you, can be more valuable than a random angel investor who don't have any particular skills other making intros to their network.
However, you don't usually want to raise the whole round from $5k investors since it can be a lot of work, no-one has a bigger stake, you add a lot of names on the cap table and its going to be hassle each time you do additional financing.
As a founder/company, doesn't really matter to me if a person invests $5k vs $50k if they are just engaged and helpful. For example someone who really understand sales and can teach you, can be more valuable than a random angel investor who don't have any particular skills other making intros to their network.
However, you don't usually want to raise the whole round from $5k investors since it can be a lot of work, no-one has a bigger stake, you add a lot of names on the cap table and its going to be hassle each time you do additional financing.