Mint’s Aaron Patzer talks early stage finances and about the aquisition

Raising Money:

* Phase 1: Once you have a mature idea, raise $100,000 from friends and family to build a prototype

* Phase 2: Prototype complete, raise $1 million and launch an alpha into the market.

* Phase 3: Once you have some traction, raise $5 to $10 million to scale up.

Phase 1 Expenses (1st $100,000):

* Founders: $30,000/year

* Engineering 1st hires: $30,000-50,000/year

* Office: $400/cube/month

* Tech: $10,000

* Legal: Deferred payments for 0.50 – 0.75% of company

Phase 2 Expenses (seed round):

* Salaries: $50,000 – $90,000/year ($450,000/year for 5 people)

* Overhead: +20% ($100,000/year)

* Legal: $25,000 + $2,000/month ($50,000/year)

Phase 3 Expenses (Series A)

* Salaries + Overhead: $200,000/year/person

* COGS: many one-time expenses add up to about $150,000/month

* Legal: $10,000-$50,000/month

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