Questions

How much users should I have for million dollars as seed/seed plus funding round?

I'm starting a company that should have 10k users. It's location based so I need money to expand and increase users. How much MVP and users do I need for funding?

2answers

Good question.
It's not only about how many users you have, it also (and sometimes even more importantly) about:
1. What the conversion rate is (visitor to user or click to paying customer, etc...).
2. What your user life cycle is.
3. How engaged the users are.
4. What your profit % is from each user.
5. What industry you're in.
and a few other metrics. Sometimes, if these metrics are good, it less matters that you "only" have X users.
Good luck

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Answered 7 months ago

I believe that seed funding rounds are not solely determined by the by number of users alone, there are several factors included in it alongside the users.
If the founders are asking for $4 million and he needs a 25% ownership stake to rationalize the investment, then everyone agrees that, on paper, the company is worth $16 million. That’s been the experience of Peter Pham, cofounder of Science, an incubator in Santa Monica, California behind Dollar Shave Club and Bird, among others.
You can read more here: https://www.svb.com/blogs/silicon-valley-bank/determining-seed-startup-valuation
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Answered 3 days ago

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