Technology Startup Company?

[Learning]

For several years now I've been determined to start a web-based startup company with one or two guys - similar to Paul Graham's typcial startup structure (www.paulgraham.com).

I was wondering if anyone here had experience with a technology startup (bio/nano tech, web, other tech). How much money is really needed in the seed funding round from family/angel investors? Paul's rate of success to sell a startup Y Combinator takes on is estimated by him at approx 25%, although he and his company takes a lot of steps to ensure the success of the startups they fund.

The "goal" for me is to be able to fund my own startup after school with money earned from poker (for the first round or so, that is).

Does anyone have any information for me? Thanks!

Any information for me at all?

[Preem]

It depends a lot on your "burn rate", i.e., how much cash per month do you need to keep going.

Project that amount out to the point where you run out of money and need to raise more. With a web-based company, you might be able to start generating revenue fairly quickly. However, if your idea is capital intensive like Amazon (inventory, shipping, and handling) or eBay or Google (compute servers), then your requirement for funding goes up substantially.

You should put together a business plan including detailed, realistic financial projections - monthly burn rate, expected revenues if any, when do you plan to become cash-flow positive, when do you expect to become profitable.

This will help you figure out how much seed money you need, and when you need to start looking for more money.

[Evan]

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How much money is really needed in the seed funding round from family/angel investors?

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This depends entirely on what you're doing. It could be none and it could be $5 million.

[Sniper]

Write a business plan... or at least a rough outline...

How's your coding skills?

[Learning]

This is a long term probing attempt here, as I'm only 18 and still a senior in high school. I wouldn't attempt a startup until I had at least my BS.

Current coding skills are above average given age. I'm sure I'll be quite proficient in four year's time.

I've come to the conclusion that working out an actual idea or product at this time is not as important as knowing the structure and environment in which I wish to work. Advancing technology and new startups could also take any idea I had developed on my own (in a general sense).

[Sniper]

To be honest, since you mentioned Paul's site, I'm surprised by your question... think it, learn it, do it...

Start here:

How to fund a startup

Why to not not start a startup

A Student's Guide to Startups

[Learning]

I've actually read all of Paul's papers, some multiple times.

I suppose what I was really wondering was if anyone on this forum had any experience with a startup venture?

Thanks for replying Sniper :-)

[DesertCat]

I've helped start three software companies. But I can't add anything to Preem's and Evan's posts. It depends. Write a business plan. The best business plans can get bootstrapped until you build something so great it's easy to raise money.

[Evan]

Read Founders at Work.

[Learning]

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Read Founders at Work.

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Thanks! I've seen good reviews about this title but I never actually picked it up. It's ordered and I'm sure I'll love it.