David Teten

JANUARY 19, 2021

Seed-stage compatible: Like traditional equity VC investors, Flexible VCs accomodate early-stage investment risk within their portfolios better than a traditional RBI funder. That said, nothing is cost-free. More complex cost of capital calculation. Flexible VC can allow Impact VCs to thread this needle.”.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Both Sides of the Table

JULY 23, 2014

The rise of “micro VCs” or seed-stage funds. Lower costs to start a business (95% reduction), many more companies created & funded by angels / seed. The “big boom” in startup financing started around March 2009?—?more On the surface the narratives have been. more than 5 years ago?—?and

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

Hunter Walker

JULY 22, 2014

Hey founders, want to hear something incredibly frustrating about seed financing? Are there areas of variable cost or support that need to be scaled alongside the growth? Revenue runrate that you believe is required to raise additional financing. I don’t believe the forecast you show me. Yeah, that one.

Forecast 96

Forecast Early Stage Seed Stage Startup 96

Startup Company Lawyer

MARCH 14, 2010

After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR).

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

K9 Ventures

JUNE 5, 2015

Almost two years ago, in a private/closed meeting with K9 Ventures’ LPs only, I claimed that: What was being referred to in the press as the “Series A Crunch” was not because fewer Series A deals were being done, but because there were too many Seed deals being done. Seed stage was super tough. Implications for Founders.

Seed Stage 48

Seed Stage Venture Capital Early Stage Valuation 48

Hunter Walker

SEPTEMBER 15, 2023

So when I tell you what I’m seeing in venture financing these days if you disagree with me, it might just be that we’re touching different parts of the elephant. Haystack’s Semil Shah wrote up his POV on what this has all meant for the seed market and one point in particular caught my eye.

Cap Table 93

Cap Table Valuation Salary Seed Stage 93

Startup Company Lawyer

AUGUST 31, 2012

Over the past few years, convertible debt has emerged as a quick and inexpensive method for startup companies to raise money from angel investors and early stage venture funds. ” As a result, Ted introduced the Series Seed preferred stock documents as an alternative to convertible debt for early stage investments.

Convertible Security 73

Convertible Security Equity Security Preferred Stock 73

View from Seed

OCTOBER 21, 2014

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

Valuation Founder Seed Stage Angel Investor 336

VC Cafe

FEBRUARY 27, 2024

What’s the difference between an angel round and pre-seed round and why do I believe we’ll see more pre-seed rounds taking place in 2024? While the answers are somewhat semantic, the pre-seed funding round is making a comeback in 2024 startup financing. Seed is about showing initial product market fit.

Valuation 186

Valuation Software Review Generative AI Technical Review 186

Gust

SEPTEMBER 5, 2012

How to finance a new seed-stage startup? ” Ressi in particular seems to be passionate about removing the “debt” component from convertible debt seed financing transactions. .” A convertible note financing is not a loan in the conventional sense. Convertible debt?

Finance 134

Finance Convertible Security Equity Seed Stage 134

K9 Ventures

APRIL 9, 2014

Instead, it was more of a result of over-funding at the seed stage. There was simply too much money coming in to the seed stage, which increased the supply of companies at the seed stage. Hiring costs are up dramatically The cost of hiring top quality talent in the bay area has gone up dramatically.

Mezzanine 134

Mezzanine Seed Stage Early Stage IPO 134

K9 Ventures

JUNE 12, 2012

While it it may not feel that way, the data suggest that there is indeed too much capital in the system — especially so at the seed stage, with more and more individuals and larger funds trying to invest in companies at this stage.). This is because excessive capital becomes toxic for an early stage company.

Venture Capital 117

Venture Capital Silicon Valley Founder Seed Stage 117

K9 Ventures

JUNE 12, 2012

While it it may not feel that way, the data suggest that there is indeed too much capital in the system — especially so at the seed stage, with more and more individuals and larger funds trying to invest in companies at this stage.). This is because excessive capital becomes toxic for an early stage company.

Venture Capital 105

Venture Capital Silicon Valley Founder Seed Stage 105

Hunter Walker

FEBRUARY 17, 2022

At the seed stage, no matter how much you know about an industry or a founder, you’re still taking a real bet. We all spend more time talking about our wins than our losses, but the reality of early stage investing is that many of our portfolio companies don’t become runaway successes.

Venture Capital 85

Venture Capital San Francisco Portfolio Operations 85

Both Sides of the Table

SEPTEMBER 5, 2012

Was Paul Graham right in his “high resolution” financing post? ” And some seed stage investors told me, “I prefer not to fight over price now. You rarely find full ratchets in early-stage deals any more. Nobody I know accepts multiple liquidation preferences in early-stage deals.

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

K9 Ventures

MARCH 23, 2011

There has been a lot of noise in the Valley lately about how most seed stage deals are now being done as convertible notes. The convertible note was really intended as an instrument for a “bridge financing” – when an equity round was imminent, and likely to occur, but the company needed some money in between.

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

Both Sides of the Table

SEPTEMBER 27, 2010

Now we can call you a seed-stage VC or a micro VC. What micro VCs need to consider is what happens when several of your companies want to grow and require VC financing? Or when the economy turns downward and they all need financing extensions? If you invest it in startups you’re a VC professional money manager.

Liquidity Event 308

Liquidity Event Silicon Valley Seed Stage Finance 308

www.seriesseed.com

MARCH 2, 2010

SeriesSeed.com Series Seed Financing Documents Blog Home Documents Blog Archives Subscribe 09/02/2010 Version 2.0 and why Series Seed Documents are better than capped convertible notes “First they ignore you. of the Series Seed Documents as well as a red-line showing the changes I’ve made from the original set. 

Finance 58

Finance Term Sheet Equity Aggregator 58

Steve Blank

FEBRUARY 26, 2020

For startups the early stage funding landscape looks like this: Step 1: The Pre-seed round – you raise $100-$750K. Step 2: The Seed round – you raise $1-$3M (in some cases even $2-5M). Btw, the definition of each startup financing stage has changed in the last decade. Pre-seed Round of Funding.

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

Startup Lessons Learned

JULY 15, 2020

Robert and I talked about how it's working, the science of pseudoviruses and reporter genes, how his father's example in science and business set him on his path, and how to bridge the gap between science and finance. What's the cost of delay? So the cost of delay is immense. It's like the way you won't hurt anybody.

Technical Review 68

Technical Review Software Review Finance Technology 68

Both Sides of the Table

JUNE 29, 2011

If you don’t want to read that post, the summary is: Open source computing drove computing costs down 90%, which spurred innovation in technology. Open cloud led by Amazon with their AWS services drove total operating costs down by 90%. So VCs spent a couple of years experimenting with earlier-stage investing, which is OK.

Venture Capital 296

Venture Capital Software LP Early Stage 296

VC Cafe

FEBRUARY 6, 2011

If you are in the very early stages with your company and there are no major reasons (e.g. If you just travel in, don’t attempt it, it will be an expensive waste of energy/time/cost that will get you polite meetings but no engagement. R&D in your home country, HQ in US with the CEO moving over). If not, raise locally.

Silicon Valley 104

Silicon Valley Startup Seed Stage Delaware 104

ReadWriteStart

JANUARY 28, 2022

Considering that a warrant is often issued to decrease the cost of a debt issuer, the expiration period is typically more than two years after the warrant is first issued. It is not possible to shift costs and revenues in a linear manner. Then, it considers how changes in this scale will impact the expenses associated with it.

Valuation 108

Valuation Equity Warrant Common Stock 108

mashable.com

SEPTEMBER 12, 2011

While all of these factors are true to an extent, the truth of the matter is that the reduced costs of hardware and software are easily offset by the expense of engineers and experienced business people. million in venture financing. Nearly all of your costs will be headcount, primarily in the engineering department.

Startup 79

Startup Social Media RSS Social Network 79

www.currentlyobsessed.com

MAY 28, 2010

It hardly deserves any attention at all in the early stages. For some closing thoughts, I’ll just add that: Valuation tends to be too much of a focus for most early stage companies. I know this sounds crazy, but it’s not. That’s a nice way of putting it.

Valuation 42

Valuation Channel Pre-Money Valuation Term Sheet 42

techcrunch.com

SEPTEMBER 2, 2012

There has been no shortage of controversy and criticism around the convertible note, a popular investing vehicle that’s used by seed stage and angel investors. As a refresher, a convertible note is a loan that automatically converts into equity upon the closing of a Series A round of financing.

Equity 87

Equity San Francisco Technical Review Angel Investor 87

Both Sides of the Table

OCTOBER 18, 2015

Cendana founder Michael Kim was amongst the earliest and certainly the most focused LP to spot the changes in venture capital leading to seed stage funds and has backed many of the best in the industry so it’s always a pleasure to come and share thoughts with all of these great peers. So eventually rationality has to occur.

IPO 150

IPO Venture Capital LP SEC 150

www.vccafe.com

MARCH 11, 2013

Seed Startups. VC Cafe covers early stage Israeli and European tech & mobile startups. tells you how much adwords cost. easy business finance software. hire low-cost international engineering talent. YCombinator Series AA Equity Financing Documents. Seed Stage Valuation Guide.

Software Review 53

Software Review Technical Review Startup 53

pandodaily.com

NOVEMBER 29, 2012

But wherever you stand on that, there’s one very real consequence of this explosion in seed funding: There has not been a corresponding explosion in investors willing to lead the next round, the so-called Series A. This time around, there has been an explosion at the early stages, and the very late pre-IPO growth stages.

Technical Review 93

Technical Review Silicon Valley Incubator Syria 93