funding, seedWe are looking at raising a seed round to help pay for a developer’s salary.
I talked with Seek Capital who said the only option for seed funding my startup would be to qualify for credit cards that have 0% apr for 12-18 months and that allow free cash advances without interest so we could transfer money from the card into a bank account to pay for a salary..
This sounds great, but Seek Capital charges 10% of the credit limit, so if I wanted a 100k line of credit, their fee would be $10k for essentially applying to credit cards for me.
What types of credit cards is Seek Capital applying for on my behalf, that I could just apply for and cut out the middle man?
What other options are there for seed funding or getting a line of credit to help pay for a developer’s salary?
This smells really bad to me. It looks like you are personally liable for all of the credit card loans. If your startup doesn’t succeed, then you will personally be on the hook to pay it all back. Seek Capital’s fees are also really high.
You want to get seed funding where the investor is taking some risk. The investor gets a share of your company in exchange for providing funding. If the company does well, the investor wins, if the company fails, the investor loses his investment.
It looks like Seek Capital isn’t taking on any risk at all and is just charging a high fee to get you a loan where you are personally taking on the risk. Make sure you read and understand all of the details before proceeding with them.
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