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.

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Metrics in this report

Acceptable Founder-Funded Startup Costs

less than tens of thousands$

threshold

before VC investment becomes problematic