Our seed funding is based on “10-10-1”: we invest the equivalent of US $10,000 in each startup in return for 10% equity and require that each team itself invest US $1,000, as “skin in the game”.
Our model is based on a fixed “pre-money” valuation of all the startups we accept into blueMoon Incubator. With this fixed valuation, we avoid the nearly impossible task of determining company valuation at idea stage. By providing seed funding at this very early stage, we take the highest risk, and enable our startups to have a baseline valuation when they go to raise more funding in later rounds from commercial investors.