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Series Seed or Convertible Note? Which one is more founder friendly? Which one do investors prefer?

Gust

Assuming the company is able to make effective use of the seed money to greatly increase the value of the enterprise, all of that value therefore accrues to the founder, rather than the investor. That is a swing of 15x from the investor’s point of view!

Valuation 150
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A conversation with Scott Kupor of Andreessen Horowitz, author and speaker at Lean Startup Conference 2019

Startup Lessons Learned

First, the introduction of seed money as an institutional form of capital. Before the mid-2000s, we mostly had individual angels writing small checks from their personal capital, but over the last 10-15 years we’ve seen hundreds of new institutional seed funds formed.

Lean 108
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This Week in VC with @VCMike Hirshland of Polaris Ventures

Both Sides of the Table

One of things I’ve loved the most about doing now 11 weeks of This Week in VC is a chance to have an hour-long recorded conversation with investors. One of the most difficult things to do as a first time entrepreneur is to get to know the investors you might be working with if you accept money.

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How does Convertible Debt work?

Gust

HOWEVER, since I really don’t want only my money back plus a little interest (heck, I can get that just by putting my money in a bank account, instead of into a very risky startup), we agree that at some point in the future I will be able to convert my loan into the equivalent of cash, and use that money to buy stock in the company.

Valuation 117
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Get Off My Lawn! Crazy Kids and Their Sex, Drugs and Startup Advice!

This is going to be BIG.

That''s why I''ll probably hang around the Canary board a little longer than I would otherwise--to learn from future later stage investors as the fast growing company, now around 20 people, grows over the next few years into a powerhouse. Maybe if I had been better, a transition conversation wouldn''t have happened.

Startup 134
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From Nothing To Something. How To Get There.

techcrunch.com

One of the things I do as a founder of a later stage startup is to meet with early stage entrepreneurs to help them get their companies going. if you have some thoughts on this you could add to the conversation and provide some advice. Then, forget everything else, VCs included, and just build. it is always product first.

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The Series A crunch is hitting now. Have we even noticed?

pandodaily.com

But at a macro level, widespread failure this early is far less painful than if it came at later stages. ” In off the record conversations, many angels have expressed the urgency of self-discipline. If you are raising a seed round now, there are a few things you can do to protect yourself.