

Ask YC:  Non “camp” seed funding alternatives? - joeter

Hi everyone, as an aspiring entrepreneur, I faced an uncommon problem set. I just graduated from Rhodes College in Memphis, which wasn’t conducive to people interested in technology or entrepreneurship, so the majority of my learning was done with out guidance, where I would spend my time scouring the web and using Delicious to create a topic textbook of sorts.<p>I’m an economist and non-coder, yet I felt fully capable of tackling the larger issues.  I wanted to fix the current state of music by creating a viable business model that could disrupt current market conditions.   Despite a lot of negative feedback – “you can’t start a tech company if you can’t code it” - I persevered and after a half year, came full circle on a solution to the current music problem.<p>As a sole non-technical founder, I looked at programs like Ycombinator and Techstars only to realize that I would not be fully considered.  I decided to sign on Prototype Invest to act as the technological strong arm for my venture.  I was very impressed with their insight and their proposal for development milestones.  Our first beta should be finished in October.<p>With the recent controversy over Pandora, I am sure people are now aware of the financial challenges music startups face. There are separate fees from both publishers and labels for selling digital downloads and then to add streaming capabilities, the fees imposed by the labels become enormous.  But the pioneers get the arrows, so I feel there is impending change.<p>I plan to raise a seed round of under a million, to pay for all legal fees, set up an office in NYC, and bring on board an experienced COO.  While looking for seed funds, most seemed to follow the camp model.  Here’s a short list of the funds I think I could reach out to.<p>http://www.nycseed.com
http://www.mailroomfund.com/submit.html
http://www.crv.com/quickstart
http://www.tandementrepreneurs.com/
http://www.nyangels.com<p>Does anyone know any other groups that I should be pursuing or have any further advice?  Also, should I only be focusing on the east coast or should I pursue more West Coast groups?  I plan to send out my applications to all these firms before the end of the week.  However, since it’s crucial I also protect the integrity of my business model, I am a little skeptical of venture firm’s that may be using seed program offerings as a way to accumulate market research.<p>Thanks for reading this longer post.  This sight has been an invaluable resource in my quest for a better understanding of web dynamics and I really enjoy the community PG has fostered – even if I can’t directly be part of it through startup camp.<p>Thanks in advance,
Joe
Music Mobile Global
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pg
For the amount you want to raise, I'd recommend individual angels,
particularly ones with connections to the music industry.

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alaskamiller
What do you have to give up with Prototype Invest?

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joeter
It started out steeper with terms, but I negotiated to 35 percent.

I do not have any upfront costs, just sever costs for when the beta launches.

Also, due to complexity of software and databases, the development costs are a
multimillion dollar project and will utilize several developers. I felt 35
percent was justified.

