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Ask HN: What do start-ups need seed money for?

1 pointsby rickymm3over 12 years ago
Is it server costs? Is it to rent a space somewhere and start building the business? Hiring/Contracting?? what is the primary reason a start-up would need capital?

2 comments

jordhyover 12 years ago
Well, first getting seed money is a small validation of your start-up idea and team that helps raising more capital in the future.<p>The idea of seed funding is to help you create a prototype that you can show to customers and determine what is the right product market fit for your company. Typically, this process will last six months or so (however, every company is different. Getting seed funding helps you quit your job, focus on building the company and set things up the right way, right from the start.<p>You can get seed funding from angels, super angels, friends and family, crowd funding, universities or seed stage VCs.
redsparkover 12 years ago
I would say most of them need money so they can quit their day job(s) and focus on building the product.
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