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80k may be a little tight for international founders, as flights and legal fees for visas can be very expensive. Also silly things like paying extra for deposits on rent/bills as you have no US credit history. But otherwise seems reasonable.
That's one good person's salary for a year. One.
80k may be a little tight for international founders, as flights and legal fees for visas can be very expensive. Also silly things like paying extra for deposits on rent/bills as you have no US credit history. But otherwise seems reasonable.
$150K is not enough to secure H1B visas either.
The "prevailing wages" for an engineering position (the minimum salary the company can pay an engineer on a H1B visa) in CA are about $75K. This means that there is almost no leeway even if only one of the founders needs an H1B: this funding alone would not cover it.
YC is very aware and supportive of immigrant entrepreneurs though, so I am sure they are already thinking about this.
Two mitigating facts:
- It is prudent to have enough money in the bank to pay the H1B employee for a year, but this is not a requirement before filing for an H1B, especially if you can show that there are other ways the company can continue to pay the employee. Most significantly: revenue :)
- The H1B is not the only route available to non-resident entrepreneurs: the O1 visa is another option, although the requirements are more stringent.
I have had to cross a few of these bridges myself, so if I can be of help to anyone reading this, please email me: hnusername@domainINprofile.com
I'm probably completely wrong but guessing Sam Wyly was perhaps one of the major reasons?
$80k or $150k seem like pithy amounts of money to fund any sort of company. What am I missing? That's one good person's salary for a year. One.
But when you're starting a startup, you don't take a salary of that size. You live cheaply and take only the minimum that you need as you commit yourself to building your company. It's not a life for everyone, but it is the startup life.
$80k or $150k seem like pithy amounts of money to fund any sort of company. What am I missing? That's one good person's salary for a year. One.
This is a seed investment to help you prove your idea, or a bit of a boost for a business with profits too low to get impact from reinvestment.
http://www.xconomy.com/san-francisco/2012/11/26/y-combinator...
What equity is given for this (/how has it changed?) and is this pre defined or 'negotiated' ?
This is a convertible note[1], just like the previous incarnations. Which means that the amount of equity it is worth isn't determined until a priced round happens (where a valuation is set). [1]: http://techcrunch.com/2012/04/21/convertible-note-seed-finan...
Earlier quoted context omitted.
This is a convertible note[1], just like the previous incarnations. Which means that the amount of equity it is worth isn't determined until a priced round happens (where a valuation is set). [1]: http://techcrunch.com/2012/04/21/convertible-note-seed-finan...
Thanks, i see.. is there a requirement on when to take more funding then? what would happen if the startup didn't take further funding (put remained profitable)?
Earlier quoted context omitted.
I'm certain there are some companies that need more runway than others. Is it possible for, say, hardware companies to renegotiate for, e.g. 30k per VC rather than the current 20k?
I'd never thought of that. Maybe in version 2.