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How a Seed VC Approaches Pre-Product Startups

View from Seed

This notion of founder/market fit is incredibly important for pre-product companies who are out raising seed capital or pre-seed (aka genesis rounds) — both of which we invest in. When a company is pre-product, it is by definition pre-product/market fit. And what risks will be associated with scaling at that point?

Product 120
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Why Startups Die

The Next Web

Here’s the problem: this opportunity doesn’t exist for early-stage startups, because, by definition, they have no users or customers. It can be very tempting to take in a little bit of seed capital, and start to operate as if you’re a big company.

Cofounder 155
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Four Winning Strategies from Series Seed to Series A

Genuine VC

The five conditions for a Series A financing which he enumerated are: a core team ready to scale, demonstrable market size, repeatable cost effective customer acquisition, metric momentum, and plausible monetization. But unfortunately these are neither necessary nor sufficient for raising that round, and are instead merely guideposts.

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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. Above-Market Value.

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Knowledge Is Power: Convertible Note Financing Terms, Part I

Gust

Given that convertible debt financing has become the de facto standard for small (<$1MM), early stage deals in recent years, I thought I would write a primer on the elements of a term sheet and definitive documents for entrepreneurs looking at the earliest stage financing rounds. Let’s take it from the top: Why convertible notes?

Finance 178
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Out of the Crisis #27: Eren Bali of Carbon Health on public health, COVID vaccinations, and working as a unified society to solve problems

Startup Lessons Learned

A provider of low-cost health clinics across the country, Carbon Health was also on the frontlines when the COVID pandemic hit--and even understood what was coming long before most people in the U.S. Carbon Health is a provider of low-cost health clinics across the country. We had to raise some seed capital.

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The Fallacy of Channels: Startups Beware

Both Sides of the Table

Sort of amortizing the costs of their sales reps over more products. The price points are not as high as your beautiful Excel spreadsheet had forecasted when you raised your seed capital. So Should I Avoid Channels at all Costs When I’m a Startup? That’s going to cost you margin. If they have $1.2

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