Remove 1996 Remove Cofounder Remove Entrepreneur Remove Seed Money
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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.

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Busted or Confirmed? 3 Common Myths About Starting A Business

crowdSPRING Blog

That is why it is imperative for entrepreneurs to critically examine all advice and “truths” about startups. Fortunately, many startup myths revolve around three common topics (business plans, money, and unnatural hustle). Entrepreneurs must be nimble, and will be more apt to stick with a flawed concept they spent months drafting.