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How to Start a Startup

www.paulgraham.com

We alsothought wed be able to sign up a lot of catalog companies, becauseselling online was a natural extension of their existing business.But in 1996 that was a hard sell. Stephen Hawkings editor told him that every equationhe included in his book would cut sales in half. We officially launched in early 1996.

Startup 105
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The Silliness Of Recapping Seed Rounds

Feld Thoughts

A company raises $1m of seed money from angels in a convertible note with a $6m cap. Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. But in this cycle, I hadn’t seen it in a seed round.