Ask HN: StartGarden.com, 3% equity for $5,000, will it screw up Seed/A rounds? (startgarden.com)

I like the micro and crowd funding aspect of Start Garden. The two $5,000 awards per week is a nice small slug of money to do a bit of experimentation or a test or two to see if an idea actually has some traction. Also I like that you can read their contract, and after asking them yes they'll modify it for a C corp.

While 3% for $5,000 might be stiff, you also don't need to have much definition for an idea to go to them. I personally need an outside validation to make sure my spouse stays onboard with me focusing time and energy on my startup. As a single first time founder located in the same city as them it's a deal I'm willing to take. So I threw out my idea this week, and I'm looking at some of the other ideas and honestly most of them don't look like they have the potential growth profile to get a seed round. I looks a bit like it's become get your friends to vote so I can get $5,000.

My big concern is if I took StartGarden's money when I go for financing will having someone like StartGarden behind me going to to be a help or hindrance? If I go to a seed or A round will having a startup VC in the mix going to hurt me. Also if they don't particapte, in future round how bad will that be?