Startup Progression Part Three

Diagram of the typical financing cycle for a s...
Image via Wikipedia

Earlier this week I had a chance to meet with a seed stage startup here in Atlanta. The team is composed of two smart guys that have known each other since high school and went to the same ACC school. Here’s some more information on the team:

  • Working on a B2C web startup
  • Raised a mid-five figures friends and family round
  • Both co-founders have a technical background
  • Both co-founders worked for several years for big companies before starting this venture
  • Have some traffic to their site but not much
  • Thinking about doing an advertising and sponsorship driven model

My advice for them, being in Atlanta and doing a B2C startup, was to either figure out how to get to ramen profitability immediately or move to San Francisco and take part in the angel financing bubble. They could also pivot to a B2B model and have more fundraising options in Atlanta, but it is still tough without six figures of revenue.

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