I bootstrapped my startup product to launch with about $50K, and am now getting inquiries for Seed/Series A investment. How should I set up my initial bootstrapped investment? It seems YCombinator SAFE documents are the way to go, but how do I determine the discount and cap in this case?
Questions
How much should the cap be on my own founder investment?
3 answers from the community
A· Jun 28, 2016
hard to say, but initial seed valuation (cap) for a decent startup seed is prolly US$3-5M. if you are getting inquiries for a Series A, that would imply you have a pretty HOT product suggesting much higher cap. however, note that if you get into YC, their standard "$120k for 7%" for all batch entrants implies only a $1.7M valuation.
A· Sep 14, 2016
I think you misunderstood his question
A· Sep 14, 2016
You can realistically set a cap of 300k-500k for your 50k. After all, there was nothing in your company when you started.