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What Makes an Entrepreneur? Cojones (7/11)

Both Sides of the Table

Through comment conversations with many of you I tried to emphasize that it isn’t enough to just have one attribute. VCs don’t have the same net worth litmus test and great entrepreneurs have a ton of sources for seed money to get financed very early. You need the whole package. You have kids, a mortgage, MBA debt?

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The Legal Side of Entrepreneurship

YoungUpstarts

Startups need to understand how to manage the seed money they receive from investors and VCs. The primary terms for these types of transactions are the valuation cap and the conversion discount. Patent trolls purchase portfolios containing patents and sue companies for infringing them. Patent Trolls.

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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. This lasted from about 2001-2004.

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

Startup Lessons Learned

And while it can often be the case that “lemons ripen early” (meaning that the unsuccessful companies fail early in a fund’s lifecycle), the harvest cycle for the winners in the portfolio can take what sometimes feels like an eternity. First, the introduction of seed money as an institutional form of capital.

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Tiered Valuation Caps

Austin Startup

However, there are circumstances in which founders know there are potential serious milestones on the short-term horizon that would dramatically influence valuation, but they need to close their seed money now. Good investors who don’t view you as just another number in their “spray and pray” portfolio won’t criticize you for doing so.

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Traction vs. Product

Rob Go

I’ve had a couple conversations with other investors recently around what a seed stage company needs to achieve to raise a series A. Instead, what I often see is that the minute seed money is in the bank, founders try to staff up very quickly.

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The Future of Web Startups

www.paulgraham.com

When founders can do lots of startups, they can start to look at the world in the same portfolio-optimizing way as investors. If startups are easy to start, this conflict goes away, because founders can start them younger, when its rational to take more risk, and can start more startups total in their careers.

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