Seed Funding and Budget Guidelines
Information about Managing Seed Funding and Budgets
With the Pitch Presentation, include the following:
- See Recommendations for Utilizing Seed Funding below
- Indicate two members of the team who will oversee the budget and expenses.
When seed funds are allocated to your team:
1. Treat the seed funds as investment from the E-Hub in your start-up venture.
2. Although the E-Hub/Bentley do not seek equity, the funds should be used responsibly.
3. Note the difference between Prize and Seed Funding
4. Talk with your mentors immediately to refine the budget.
Obtaining seed funds allocated to your team:
1. Work with the E-Hub to obtain access to your seed funds.
2. The E-Hub will provide seed funds in tranches for each phase.
- Phase 1: $500 and then $500
- Phase 2: $500, then $1000, and finally, $1500
- Phase 3: $2000, then $3000, and finally, $5000
- At each step, you will need to provide spending reports
Managing seed funds and expenses:
1. Click for E-Hub Incubator 2024-25 Phase1-Expense Tracking
2. Be judicious in the use of funds (spend wisely, you have a lot to accomplish).
3. Funders are happier when you demonstrate that you are good stewards.
Recommendations for Utilizing Seed Funding at each Step
Phase 1 ($1,000) | Phase 2 ($3,000) | Phase 3 ($10,000) |
| Product Development $300 Prototyping materials Software/Hardware Product Wireframes | Product Development $1000 Prototyping & Testing Product refinement Exploring production | Product Development $3000 Product development Testing alternatives Moving to production |
| Market/Customer Research $200 Market research surveys Customer interviews | Marketing/Sales $800 Digital marketing campaigns Sales materials and demos Developing personas | Marketing and Sales $2500 Design marketing campaign Test alternatives Target market research |
| Operations and Administration $150 Office supplies Administrative costs | Operations and Administration $500 Admin support Other costs | Operations and Administration $1500 Infrastructure Admin/operational support |
| Legal/Compliance $150 Basic legal advice Incorporation fees | Legal/Compliance $300 IP protection, if any Contracts/Licenses | Legal/Compliance $1000 Detailed legal services Compliance concerns |
| Team Expansion $300 Hiring new team members Training and development | Team and Talent $1500 Hiring personnel Training and development | |
| Miscellaneous $200 Unforeseen expenses Contingency fund | Miscellaneous $100 Unforeseen expenses Contingency fund | Miscellaneous $500 Unforeseen expenses Contingency fund |
| Your Goal Learning how to be a good steward for seed funding and demonstrate that you can use it to build your idea | Your Goal Demonstrate you understand spending priorities and are learning more about products and customers | Your Goal Demonstrate that you are making progress towards product-market fit and seeking external funding |
Notes:
- Not all ventures are the same, and budgets will vary. Use the above as guidelines.
- You are not required to spend every dollar of seed funding within the timeframe.
- If your team moves to the next stage, you may carry over the remaining funds.
- Even if your team does not, you can access remaining funds to continue your work.