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Bryan E. Kuhn
Counselor at Law, P.C.
Business & Employment Law Attorney

Seed funding used to jumpstart e-commerce business

Seed funding occurs when to encourage investment an investor ends up purchasing a portion of the business in return for the money it contributes. This seed money is generally needed in the very early stages of an organization when funds may in particular be in short supply.

For example, a Boulder, Colorado group and other investment networks have now raised $355,000 in seed funding for an out-of-state startup company. The Colorado investor contributed $154,570 with the two other investment companies contributing the remaining amount. 

The platform for the company is driven by the use of specific big data analytics. The startup company hopes to take advantage of a growing online market concerning purchases of products that are made with mobile devices. The money reportedly will be used to establish relationships with publishers and advertisers. It’s possible that satellite office will have to be established along the east coast where many of these advertisers and publishers reside.

There are a number of hiring decisions that will need to be made. A chief marketing officer will have to be found. The CEO for this startup company has also spoken to a number of colleges in an effort to hire on employees and interns. They are looking for employees in the technology and marketing field.

It isn’t always easy securing seed money for startup companies or other business ventures. In certain circumstances attorneys experienced in the venture capital area can assist companies locate the funding they need. The advantage that attorneys also have over other professionals is that they have the ability to provide legal advice and services for the company as well when it comes to any number of aspects for setting up a business.

Source: Omaha.com, “Omaha e-commerce startup secures seed funding,” Paige Yowell, June 2, 2014

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