Seed funding · Startup Funding

What percentage of your seed round should you spend on a domain?

Maja Rašić QA Tester

April 14th, 2017

I’ve been reading a bit about startups that paid a lot for a domain name but felt it was justified. What I haven’t heard a lot about is what startups in the seed stage do when they identify a domain name they want and feel would drive business, but is nevertheless very expensive. Would percentage of your seed funding would you feel comfortable allocating towards a domain name purchase?

MaxBlox/Founder Institute Director, Chennai Area at The Founder Institute

April 14th, 2017

$9.99 per year. The domain name that would actually add sales to you such as "Business.com" are all gone. Domain names just have to match your company name or product. Most people search for you on google using key words describing your service. If your web content and SEO is good, you will be found. Dont waste money.


Sebastian Pereyro

Last updated on April 14th, 2017

If you have a polished product, and need more business because you already validated the idea, implemented it, you have all the processes in place, you have the team, and the infrastructure to handle the massive amount of business that a very expensive domain will bring, you can spend any amount of money that make sense for your business, otherwise do not waste time, energy or money thinking that a perfect domain will make you achieve all the other without significant amount of effort and persistence.

JP Amolat Looking for a co-founder to start a Fashion AI co.

April 14th, 2017

When I was first starting one of my startups ... I just spent a couple of hundred dollars buying out every .co, .net, etc. iteration of my domain. When we got funding, I was then able to spend a couple of thousand buying the .com version of the domain. I say it's always worth paying the price. Always think long term. If you plan to be a big player and have forecasted to have millions of dollars of revenues in the next few years, then you already know the answer. It's worth every penny from your funding to get the right domain name.

Nick Damiano Co-Founder & CEO at Zenflow

Last updated on April 14th, 2017

It's worth buying a decent .com domain if you can get it for a reasonable price. We paid $2,000 for our ideal domain to a third party and it was well worth it (our funding in at the time was $1.2 million). I wouldn't commit > 1% of your funding to a domain unless it's an amazing one that gives you a huge marketing advantage, for example: https://priceonomics.com/how-microryza-acquired-the-domain-experimentcom/

Dimitry Rotstein Founder at Miranor

April 14th, 2017

Personally, I would rather change the name of the company than to pay squatters a dime for a "perfect" domain. In fact, when I'm coming up with a name for a project, I always check the domain and trademark databases to make sure it's not taken. In any case, I wouldn't worry much about it. I mean, how many people these days search for a website by entering its URL directly?

Larry MacDonald Explorer identifying previously unseen opportunities

April 14th, 2017

Just about none. Test your concept with a less-than-optimal domain name and only after you have proven the concept and raised more capital consider buying an optimal name. Remember, a brand has to be established, which takes time and money. Meanwhile, people will find you through search, so do excellent SEO to get off the ground.

Steve F

April 18th, 2017

Very little, at seed stage you're still confirming product-market fit, and figuring out if that will scale. Domain name is an optimization once you know your product market fit, a bit like the colour of your buy now button!