

While many startups need less money to start, they still need money to grow - cwan
http://www.avc.com/a_vc/2010/07/some-thoughts-on-the-seed-fund-phenomenon.html

======
joubert
I hate it when people put together charts (especially with labeled axes,
clearly marked data points, etc.), and then say this:

 _This is an entirely theoretical chart. There is absolutely no real data
behind this chart. That said, it does reflect our experience investing in
about thirty "web 2.0" companies over the past seven years._

------
nreece
But, if they have a business model from the start, they need less money to
grow.

------
jamesshamenski
these numbers aren't correct.

FourSquare didn't grow to 2m users on $1m. Last month before they publicly
closed their financing, they had 25 employees and were expanding
([http://techcrunch.com/2010/06/28/checking-in-to-
foursquare-a...](http://techcrunch.com/2010/06/28/checking-in-to-foursquare-a-
look-inside-the-startup-video/)). Maybe Dennis used his own cash but it
certainly cost more than $1m.

------
sajid
The Foursquare example is great, they got traction first then went for a seed
round. It's a helluva lot easier to raise money that way.

