SaaStr · 2015-10-24
· 3875d
Fronting Startup Fees for Your Cofounder: VC and Angel Investor Perspectives
A founder asks whether personally funding initial startup expenses for a cofounder will negatively impact future fundraising with VCs and angels. Jason Lemkin advises that this is generally not problematic, sharing his own experience of self-funding a beta. He notes that VCs typically don't care about reimbursing small incorporation and startup costs, but amounts exceeding tens of thousands of dollars may raise concerns.
Metrics in this report
Acceptable Founder-Funded Startup Costs
less than tens of thousands$
threshold
before VC investment becomes problematic