In the latest poll on StartUpArabia, the question to the readers was:
How much money do you need for your startup?
The result of reader voting came out as follows:
Out of 230 readers who responded to the poll:
– 37.83% of them say they’d need only between $10,000 and $50,000
– 17.83% say they need $100,000 to $250,000
– 14.78% only need $50,000 to $100,000
– 11.74% said they need $250,000 to $1,000,000
– 7.83% need more than $1,000,000
– and the remaining 10% don’t need any money at all
I think the results of this poll are very interesting, because they highlight a number of really important issues:
– The evident gap we have in angel and seed funding that covers the lower startup budgets that make up the biggest percentage of startup needs, as confirmed by the numbers above.
– Are the region’s VC firms being realistic with the investment sizes they’re looking for in the online and technology startups area?
– Are entrepreneurs being realistic with the amounts of money they think they need? Are they asking for too much or too little? Are they taking into consideration all the costs they need to get their startup on its feet, or are they just looking at what it costs for them to get a prototype out the door?