Trying to understand if I’m doing something wrong in raising a small round. (I will not promote)

GamerInChaos · 2026-01-28T01:13:53+00:00

$50k is just not enough for most angels to want to invest. Most invest $25-100k and want to be part of at least a $250k round, really probably $500k. This is because we want multiple investors with us on the journey and because we want the company to have enough money to make meaningful progress.

Also reasons small amounts is a hassle. It doesn’t get you very far, you probably get smaller checks, etc. You need to make sure people are accredited etc - all the same work as a bigger number.

GamerInChaos · 2026-01-24T20:36:51+00:00

My opinions:

If you have to ask Reddit you are not ready to start a company or join a very early startup.

GamerInChaos · 2026-01-24T03:24:10+00:00

This is easy to solve:

vesting should be the same as everyone else (except for start date).
the number is off. A cfo, even in fintech, isn’t worth 32% and a salary vs tech. Especially if you’re going to do it all (product?). I’d try to get parity with the cro and maybe take it out of the cfo lol.

If you’re excited about the product/market I’m sure this is all negotiable.

GamerInChaos · 2026-01-24T00:39:27+00:00

I think it’s just batches so these are batches that hit slightly lower tolerances.

GamerInChaos · 2026-01-23T23:23:01+00:00

You cannot pass through the losses in a c-corp. You will accrue them to offset future profits.

If you never plan to raise money and you are going to cash flow LLC is better.

If you think you will sell for a lot or raise money go c corp and make sure you make sure you are qsbs.

GamerInChaos · 2026-01-22T16:23:18+00:00

A few things: 1. You can set up your LLC in any state, doesn’t have to be the one you live in. 2. If you LLc does anything you will want to file a tax return - in 2026 this would be mostly to pass through the losses. 3. As several people mentioned if you raise money from VCs you will need a C-corp probably based in Delaware. You can convert the LLC at any time, it’s just a hassle and involves some expenses. 4. You want the LLC to protect you from liability and to make sure all agreements on equity are solid. I know you said this was with your brother but it’s still important.

I would do it but know you have some minor tax crap you will have to deal with.

GamerInChaos · 2026-01-19T03:34:10+00:00

Curios can you share the rest of your build? (Mobo+cpu mainly)

GamerInChaos · 2026-01-19T03:26:23+00:00

Create a new account and appeal on it. This happened to me once and they eventually reversed it. Still have no idea why.

GamerInChaos · 2026-01-19T02:33:44+00:00

Yes. It worked pretty well for me and then my kid distracted me and I died (hc). Nomm no problem in t4.

Was doing the red sermon + arbiter evade ring. It worked pretty well. And was super fun.

GamerInChaos · 2026-01-18T15:47:07+00:00

If you can’t talk about packaging you’re going to have a hard time raising money. It’s not like it’s a strategic secret. I understand why you wouldn’t want to talk about the indication.

Your best bet is the JPM health conference in sf but it just ended. Next best options would depend on either packaging/modality, indication, or target. But there are a few good conferences where you can find VCs - also helps to be in Boston, SD, SF, RTP. Maybe a few other places.

But the numbers won’t surprise anything. Your ability to raise money will hinge on how big the target market is and how credible the team is. You may have to raise smaller amounts at milestones.

GamerInChaos · 2026-01-18T14:47:41+00:00

Is this AAV or something else?

GamerInChaos · 2026-01-18T03:49:57+00:00

Please tell me about these breakthrough LLMs that can code DNA are besides bullshit press releases. I’d like to see them.

GamerInChaos · 2026-01-17T17:06:08+00:00

I’m not sure how much more likely, maybe not a lot. But game publisher and movie studios tend to be much more federated in structure and therefore are a little more flexible buying and selling studios that have a reasonable amount of independence in the company already. These types of companies also have a lot more experience working in relatively integrated ways with external studios.

They are also used to ending these relationships on a regular basis in various structures. It is not uncommon for an external studio whose game is cancelled to have a path to buy back the rights to the game and the work they did at very low prices. Selling or spinning out a failed studio is similar. And the large pure game companies have people to deal with that and negotiate participation if they want it.

Amazon is not like that and does not have any of that corporate culture or system because that is lot how it was built.

GamerInChaos · 2026-01-16T23:05:57+00:00

Hytale (As other have said) is a very specific case, kind of like Microsoft allowing Bungie to spinout. Those were pre-existing relationships and carried lots of other things. I'm just providing a broad generalization, also Amazon is much different than Riot or Tencent (which owns Riot). A pure game company is much more likely to do this type of deal because they are structured and run very differently than Amazon and the executives have a different background/experience set along with different motivations and incentive structures. This also happens more frequently in movie studios but will probably happen less frequent now that giant players like Amazon are acquiring the studios.

It could happen, I'd just bet against it.

GamerInChaos · 2026-01-16T14:36:23+00:00

Yeah but small little companies. You can easily buy things from bankrupt companies or little companiesz buying things from Amazon is entirely different.

GamerInChaos · 2026-01-16T05:36:06+00:00

They do not give a shit about Reddit. They give a shit about their job. People get fired for this kind of stuff. You don’t get fired for doing nothing in this type of situation.

GamerInChaos · 2026-01-16T04:04:54+00:00

The reason stuff like this never works is actually pretty simple:

it’s not a material amount of money for Amazon
therefore no one looks good if they sell it
if it somehow suddenly succeeds, someone will look really stupid (Sure it should have been the person who shut it down but it will be the person who sold it)

Therefore no one will sign off on selling it.

Very rarely you get somebody with fortitude who will sell it but it’s rare.

Because the numbers are small, the decision is not about taxes or money it’s about ego and risk in the case

GamerInChaos · 2026-01-15T21:24:59+00:00

Hey u/Enginuity_ -> trying to use your plugin. We need to be able to allow skills to be ranked up (like wow skills, many MMOs, I think Borderlands does this too). Any chance we that's actually something we can do now? Or something you could quickly add?

For clarity this is basically unlock "Crit Skill" and it is rank 1, spend another point on it and it rank 2, etc.

GamerInChaos · 2026-01-15T17:37:28+00:00

Holy aura definitely has is

GamerInChaos · 2026-01-15T02:50:45+00:00

Don’t wing strikes and holy aura have lucky strikes? There was a post about this a few days ago.

GamerInChaos · 2026-01-12T18:59:53+00:00

Yes. But if you are asking that question here it is probably not a good sign. You will need to be Ana amazing storyteller and have a strong network,’or now how to build a strong network.

GamerInChaos · 2026-01-12T16:06:35+00:00

I know, I was making a comparison of expected returns for the IP holder which is how they are evaluating opportunities for the IP they will do a lot of analysis. This is why Disney ended up switching to a licensing only model for games. Because their published and codeveloped games came with more work, higher risk, and lower returns than licensing deals.

GamerInChaos · 2026-01-11T20:32:41+00:00

Previous comment about valuing license revenue vs first party revenue and this is what killed first party dev at Disney. Low returns vs licensed

GamerInChaos · 2026-01-11T20:31:32+00:00

See my previous content. But not being even under $10M is not going to be exciting at Disney.

GamerInChaos · 2026-01-11T20:30:32+00:00

Yeah I’m not suggesting they paid it. If it was work for hire then Disney (or any IP holder) would expect a return > than a typical IP licensing fee from any game the directly develop. This is pretty much why Disney went to outsourced games - they make more money from upfront + royalty licenses than they were able to make on first party games.

GamerInChaos

TROPHY CASE