Offering for Startups and Pricing
* The “Bootstrapper” leasing deal is designed to allow founders to develop their software at much lower cost and consequently risk to their startup. During development, they cover just the base cost for the team’s salary (28EUR/h) and receive exclusive rights to use the software. Obecto retains the intellectual property (IP) until the license cost is paid. The amount of the license cost is additional 40 EUR/h for every hour previously spent on development. It is paid as a percentage of the revenue you generate only when you start generating it.
There should be a minimum of 3,000 EUR paid each 6 months after project start as a license retainer. Thus, Obecto is serving as an Operational Investor and is engaged with the success of your startup in the long run. We will provide ongoing technical support and consultation and also ensure a smooth transition if you decide to transfer the project developers to your payroll or onboard them as co-founders as long as they also express interest for that.
For more information regarding the license deal structure please refer to the FAQ section of this page.
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Frequently Asked Questions
I have not heard of a leasing deal for software before. How does this work?
Similar to the regular leasing deals – you pay for a product in small regular increments until you cover its whole cost. In our case, you cover only the actual cost of your software during its development. The rest of the cost will be in the form of deferred payment when your company starts making revenue or on-boards an investor. This way you also have the security that we are invested in your success just as much as you are.
Give me an example of a “Bootstrapper” license deal
Let’s say that after we have scoped your product together and estimated that it will take 1000 hours of development to complete. After agreeing on the estimation Obecto can begin work and we sign a “Bootstrapper” license contract. Every two weeks we make a demo of the progress made (Sprints) and adjust the tasks for the next two weeks according to your considerations.
After the end of the first month, we calculate the hours spent on development, say 320h. You will be issued an invoice for 320h*28EUR/h or a total of 8,960 EUR. We continue development and finish the software by the end of next month (another 320h). We issue a second invoice for the same amount. Up until that moment, your expense is 17,920 EUR. The additional license cost you have to cover, as a percentage of your revenue, is the man-hours spent up to that moment, 640h*40EUR/h or a total 25,600 EUR. If it takes more than 6 months for you to reach the generating revenue point you will owe 3,000 EUR for each 6 months passed.
What happens if I decide to onboard an investor with the “Bootstrapper” leasing deal?
That is another plus of the “Bootstrapper” leasing deal. Since Obecto is not on your cap table, you and the investor have full freedom to take your project in the direction you decide. You can cover the whole cost of the project in advance or continue under the license deal terms and spend that investment on growth, for example.
If I go for a Leasing deal do I have exclusive rights to my software?
Absolutely! Obecto keeps intellectual property rights until the license cost is fully covered while you have the exclusive rights to use and monetize the software. This ensures that Obecto can not act against your interest. You are the only one who can utilize the software until the license deal is in place.
What if I decide to discontinue a “Bootstrapper” project?
It’s up to you when to discontinue the project. Your costs will only be in the amount of the completed man-hours under it.
If I choose the leasing deal may I still pay the whole cost of the project at any time?
Yes, the license fee can be paid fully, in advance, if you onboard an investor or if your company starts making revenue. In this case, of course, you will get the full intellectual rights to your software immediately.
What if I don’t have enough budget? Would you consider partnering for equity?
Yes, as an Operational Investor we at Obecto have actually had successful partnerships like this before. We would recommend to send us your project description and we’ll make sure to get in touch.
What if I need designers for my project?
No problem! We partner with some of the best UX designers in Bulgaria who will further help your project if necessary.