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Friends and family round
So, a startup, huh? Wondering how much cash you'll need for the first stage, often called friends-n-family, angel, or R&D?
At this point, you need just enough to build a prototype/MVP (minimum viable product), grab a domain, design a logo, set up a simple website, register a legal entity, and bring on a few team members. This is all to show future investors you’ve got something solid. And you can't join programs like Microsoft for Startup Founders Club without an entity and a siteThe average angel round in poroptech is about $250k with a valuation of $0.5-2m (CrunchBase)
That’s why Placy’s founders committed 250k. We had no idea how much time/money it would take to get a prototype up and running, so we just went with the market average
The valuation of an AI startup after the angel stage can range from $5 to $20 million Can you kick things off with $50k initial capital? Unlikely. Most probably you will lose this money and the team before attracting your venture investor. Talking to investors is an unpredictable time sink. If you don't have enough time/money to keep your MVP running, you're out of biz“I only have $50k”—some might say. Here's my humble advice: if you're having trouble raising enough money for your idea, it's probably time to dream up a more attractive one.
Seriously
I have no experience in agricultural or blockchain startups. I'm talking about launching an AI proptech company in the EU in 2024
