Ask HN: Just received a small amount in funding. What do we do now?

Re:Ask HN: Just received a small amount in funding. What do ... by hooande on Wednesday November 21, 2012 @01:58AM (#4813189)

Use the money to prepare yourself for a large amount of funding. One of the first things they'll tell you at YCombinator is that vc and angel investors are very particularly about a company's legal structure. pg has open sourced the docs here: http://ycombinator.com/seriesaa.html Pay whatever you need to pay in order to get that done properly.

$5,000 is a small enough amount of money that the best way to use it is to set yourself up for the next level.

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Re:Ask HN: Just received a small amount in funding. What do ... by jacquesm on Wednesday November 21, 2012 @02:53AM (#4813301)

That's pretty good advice, but I'd hold off on spending it on legal affairs until you really need to. $5000 gets you a long way when it is spent on hosting and bandwidth, it's a drop in the bucket when you are spending it on legal advice and incorporation fees.

Use your $5,000 to leverage it to get you another $10,000 or $20,000 in sales, then start thinking about another round and spending money on legal advice and other niceties.

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