I've been working with overseas developers for nearly a year to build a SaaS website. I bootstrapped the project as much as I could up until now. I'm planning to raise money to complete the site and launch. The site is at the point where I could change the setting in our subscription billing service from Test site to Live site and start taking payments.
The site just needs a few updates and a couple of other features would be nice. I've watched all of Jay Adelson's shows on http://revision3.com/askjay and in one episode he talks about starting with the least amount you need to go live. He says he you already have a prototype you can expect investors will want less of your company.
I'm planning to pitch to Angels and can't decide on what to raise. Enough to pay my overseas developer to get the rest of the work done, include a marketing budget and technology costs, Amazon ec2 etc? This option would be around $60k.
My other option is to raise enough to hire two developers and get space in a co-working space in NYC for 3 people, this option is under $200k for 12 months. The benefits I think would be having a developer local able to work more hours per day than the guy overseas who's only able to work part time. So I might get more work out of a local developer in the long run.
Thanks in advance