Saturday, November 20, 2021

Party Round raises $7M to make the process of raising capital less awful | TechCrunch

Party Round raises $7M to make the process of raising capital less awful | TechCrunch

...It’s still early days. Party Round is focused on automating seed deals today. Its service has founders create a round, set terms and invite investors to participate. It then helps handle the requisite documents, signatures and capture of raised funds. Smaller checks than are normally considered economically viable — lawyers are expensive, as is CEO time — can be accepted, Hays said, opening up the investor pool to one’s larger network instead of merely the already wealthy.

The company didn’t share much in the way of metrics, a somewhat standard level of disclosure for early-stage companies. But it did say that during a beta period, a collection of founders raised in the low six figures per day using its service.

Which, today, is free. The startup will monetize later on, with Hays saying that there are a number of ways for it to do so. Normally I’d protest at delayed monetization, but given that Party Round intends to sit atop an artery of capital, it should be able to tap the vein to feed itself when it chooses to. Close proximity to money, and especially money in motion, is never a bad place to build a business.

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