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I need to raise $600,000 in seed capital to build my web based prototype, but even though its technology, Im finding it hard to find an investor. Any advice on this?
A guy presented his company at one of the FundingPost conferences a few months ago. He told the investors that he was raising his seed round of capital of $600,000. $500,000 was going to be used to develop the prototype of his web-based tool. He had the development team already lined up. Well, maybe in 1998 he would have gotten a check, but I can't think of one investor who would put a half a million into this today.
He had a great idea, but there is really no need to spend that much money on a web-based tool. Especially a prototype! Remember, the prototype has to work, but it doesn't need all the bells and whistles of the completed product. As for websites, yeah, they gotta work. But that doesn't mean mortgaging your house to pay for it.
There are a lot great development shops that do great work. But, it's like most businesses - Some charge $500,000 while others charge $50,000 for the same exact thing. Bottom line, get a couple of quotes.
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