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Ask HN: Fundraising for my domain-specific 2B startup – VC vs. others?

3 pointsby hudsonwillisover 1 year ago
Hi HN, recently I started by part-time one-man startup after working as a lead in trading industry for years. The product is a 2B solution for hedge funds and many players expressed interests. So far around a dozen of firms are willing to pay $30K&#x2F;year for the minimal product. My estimation of the entire customer base is approx 200 firms. The development will take roughly a year.<p>However, unlike in 2C world, most of its upstream services and data are proprietary, and vendors charge us for about $200K per year for basic licenses even after negotiation.<p>To cover this cost, I&#x27;m considering three options:<p>1. Raising funds from a tech VC. Pros: very mature business model and mentorship. Cons: This isn&#x27;t a hyper-growth business. Not sure VC will be happy to see that.<p>2. Get money from hedge funds&#x27; acquaintance. Pros: they know my business model very well and have confidence. Cons: Lesser-known source with no mentorship.<p>3. Spend my own money. I have $400K liquidable assets in bank.<p>Could anyone suggest the best choice here? Happy to provide more details per request.<p>Thanks!

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