Bootup Labs

bootuplabs.com

10 points·sachinag··5 comments

"We've blogged about Four things to have a hope of being funded, but the most important two at an earlier stage are having a co-founder and a starter executive summary." um ... ya this is going to be a problem.

Also, this is a 100k convertible line of credit. I don't know they're conditions, but Bootup Labs could easily use a convertible note to their strategic advantage... For example, bankrupt the business, take more ownership, or strong-arm a board position by offering not to covert the note.

Is this true? Can someone with more knowledge of convertible line of credit, comment on this?

If you can legally work in Canada, you're insane if you don't try to get into this program. $150K - 10x what YC does, but still with buy-in from top-tier US VCs? Eight months to just get to ramen profitable (not paying back the $150K)? This is awesome.

It's not quite as good as it sounds. You get $50-150k in exchange for 5-15% equity, which sounds like a post-money valuation of $1M, far higher than what YC provides; but then you have to pay bootuplabs $50k out of that. In effect, bootuplabs puts a dollar value on the assistance which YC provides to startups for free.

If you're doing a startup which only needs $20k in order to reach the point where you can find other funding, bootuplabs will take 7% of your company, exactly in line with YC's typical 6-7% for $20k... but I'd much rather have the YC team advising me than the bootuplabs team.

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