article thumbnail

The Market Size Fallacy for Seed-Stage Startups

View from Seed

I remember talking to one of their angel investors (and also one of my old mentors) about what the company could become and what it would look like if it ever became a really big business. His answer was so simple, and at the time, I kind of dismissed it as the view of an angel investor who didn’t really “think like a VC.”

article thumbnail

The Market Size Fallacy for Seed-Stage Startups

View from Seed

I remember talking to one of their angel investors (and also one of my old mentors) about what the company could become and what it would look like if it ever became a really big business. His answer was so simple, and at the time, I kind of dismissed it as the view of an angel investor who didn’t really “think like a VC.”

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

As the seed-stage startup fundraise process has received more transparency in recent years, ranging from published advice on how to raise seed capital to increased availability through AngelList, Funders Club, and various accelerator programs, I’ve noticed another trend emerging.

Valuation 336
article thumbnail

Timing Is Everything: How To Secure Early-Stage Funding

YoungUpstarts

Most startups will need a viable product and proof of credibility before they can expect early-stage investors to really bite. The most common fundraising mistake I see is when early stage entrepreneurs focus all their attention on trying to secure a $1 million check from a lead investor. Test the investor market.

article thumbnail

How to Evaluate Firms for a Seed VC Syndicate

Genuine VC

There are essentially two distinct basic strategies for startup entrepreneurs to raise a seed round of capital: Subscription approach – An entrepreneur sets a structure (usually a convertible note) and recruits individual angel investors who subscribe to the round, all without a term-driving lead investor.

Syndicate 207
article thumbnail

A primer on convertible notes, convertible securities, and equity

Hippoland

If this is your first time raising money, the mechanics of how investors buy into your company can be very confusing. Here’s a quick primer on how investments tend to work in startup companies at the seed stage. Equity Traditionally, investors have invested in companies to receive equity, or shares in a company.

article thumbnail

Sharp Elbows Among Seed VCs

View from Seed

Many of us in the seed stage ecosystem have noticed a shift in the way seed rounds are coming together. Historically, seed rounds were syndicated among several different firms. But there wasn’t always a clear lead investor that really rolled up her sleeves to work with a company.

Syndicate 267