Fundraising
Last updated
Last updated
The use of funds for the pre-seed round is allocated as follows:
Growth (Business Development and Marketing) – This receives 45% of the funds and covers activities related to market research, customer acquisition, brand building, and promotional efforts to introduce the product to potential users.
Development (Beta and Launch) – Product development, coding, testing, and preparing the software for beta release and eventual launch. This category accounts for 15% of the total.
Legal & Compliance (Regulatory Research and Setup) – With 5% of the funds allocated here, this covers the costs associated with ensuring that the product complies with legal and regulatory standards, hiring legal expertise, preparing documentation, and compliance checks.
Operational Costs (Admin, Tools, and Office) – 10% of the funds are dedicated to the ongoing costs of running the business which includes administrative salaries, office supplies, rent, and subscriptions to necessary software tools.
Next Round Reserve – 25% of the funds are reserved for the contingency to the next round, which is set aside as a buffer for future fundraising activities or to extend the runway before the next financing round.
As of today, the current burn rate is $14'500/month to sustain 3.5 FTEs, the IT infrastructure, and growth activities.
