Hi all,

We're heading in to our seed round of funding after raising $150k in pre seed money. We've set our goal at $350k but we're wondering if we're asking for too little.

Some context:

We're a blockchain-powered travel ecosystem with both a software (app and web-based travel marketplace) and hardware component (proprietary cash dispensing machines not unlike a Bitcoin ATM, but no volatility or mining fees). We have big machines at airports and train station, and then much smaller, easily deployable payment systems that will be deployed in smaller towns and cities.

Since this is a hardware play we see the need for larger amounts of upfront capital, but we also don't want to expand too much too fast with our bigger machines. The trade off is we deploy larger machines at high foot traffic areas or go smaller scale with our smaller machines at just more locations. Either way, we want to make sure where we deploy were set with local regulations and laws, hence not wanting to expand too fast with our machines.

Our goal was to have our first major deployment (just one machine) in Tokyo for the Olympics (waiting on final approval from the Japan FSA). COVID-19 aside, since we're only focusing on one machine in on territory we didn't want to look like we're trying to hoard capital for no reason and after pricing out the cost of one machine plus deployment costs and on going legal fees, $350k made the most sense.

To help illustrate the cost, each machine takes $2500 to build, which then gets filled with $10k worth of notes (or local equivalent). Plus the flat rate of maintenance and refill and any rent or space leasing costs. Since it's a small footprint, we could do a rev share model with the location we're setting the machine up in. So projected cost is $27k to $30k. But if we're only deploying one machine for now, we kept it lean at $350k to illustrate our ability deploy globally and become revenue generating.

Should we be asking for $500? $750? It seems counter-intuitive that investors would find it more appealing for a startup that's asking for more than what they realistically need.

Thanks for your input.