We have a developer tool (it's a subset of agile PM tools) and have 600000+ total users with 180-225K monthly user sessions, It is offered as a free tool and few months ago we launched Pro/Enterprise plans as well, We still offer 90-95% features as free, Now we generate some revenue not much but we are able to pay all the costs and will optimise our pricing model in next 3-6 months.
We get some interest in the tool from investors and one is offering us a possibility of 1.5-2.5 M USD seed round. Is it wise to take the VC money or should we continue to bootstarp. We do not have a lot of expenses, 4 co-founders (3 developers, 1 marketing) all working part time on this tool along with our day jobs. All the development is done by ourselves.
With VC money we can leave our jobs and focus full time and hire few sales people, but we can achieve the same in 1 a year if we go little hard on free to paid conversion. Also we are based in Europe, and the VC is in USA, should we take money from local VC in Europe or it does not matter.
What are benefits of taking VC money and what are downsides, can some of you really tell us your personal experiences, it will help us to make the decision.
Thanks in advance
We get some interest in the tool from investors and one is offering us a possibility of 1.5-2.5 M USD seed round. Is it wise to take the VC money or should we continue to bootstarp. We do not have a lot of expenses, 4 co-founders (3 developers, 1 marketing) all working part time on this tool along with our day jobs. All the development is done by ourselves.
With VC money we can leave our jobs and focus full time and hire few sales people, but we can achieve the same in 1 a year if we go little hard on free to paid conversion. Also we are based in Europe, and the VC is in USA, should we take money from local VC in Europe or it does not matter.
What are benefits of taking VC money and what are downsides, can some of you really tell us your personal experiences, it will help us to make the decision.
Thanks in advance