Steve Blank
APRIL 8, 2010
We thought we’d take our plan and go raise seed money. We can’t raise money knowing our plan is wrong.”. Then they had a five-year P&L statement, balance sheet, cash flow and cap table. He replied, “Well the customers are not acting like we predicted in our plan! Here’s why. It was an exquisitely crafted plan.
Feld Thoughts
AUGUST 28, 2015
Given the amount raised, the new financing, and the cap, I would have asked the seed investors to waive the terms and instead accept a smaller percentage of the company than they would have otherwise gotten. When asked what the range I would give to the seed investors post financing, I said 10% – 15%.
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Scott Edward Walker
OCTOBER 28, 2014
“The way I always think about running a startup is also the way I think about raising money, which is: it’s a process of peeling away layers of risk as you go. So you raise seed money to peel away the first two or three risks.” Marc Andreessen (at 12:40). “In Ron Conway (at 25:12). Marc Andreessen (at 26:01).
Feld Thoughts
JULY 14, 2015
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. Here’s the scenario.
www.paulgraham.com
APRIL 28, 2010
It wasnt because they werent accredited investors that I didntask my parents for seed money, though. When we were starting Viaweb,I didnt know about the concept of an accredited investor, anddidnt stop to think about the value of investors connections.The reason I didnt take money from my parents was that I didntwant them to lose it.
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