Remove Cost Remove Finance Remove Founder Remove Seed Capital
article thumbnail

How Much Seed Capital Should You Actually Raise?

View from Seed

It doesn’t need to be extremely granular with all the minutiae of your expenses, but since employees are most often the overwhelming cost-drivers — and there aren’t too many early on in a company’s life — it’s prudent to build the expense lines on an employee by employee basis. The post How Much Seed Capital Should You Actually Raise?

article thumbnail

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.

Valuation 336
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How a Seed VC Approaches Pre-Product Startups

View from Seed

It’s often a good idea for founders to find a way to build something and get some early market validation before raising outside capital. But doing that is sometimes not practical given your personal runway or because the product you want to build requires additional capital very early on. Is there founder/market fit?

Product 120
article thumbnail

Knowledge Is Power: Convertible Note Financing Terms, Part I

Gust

It should therefore come as no surprise that an asymmetry of information exists, mostly gleaned from experience, between founders and investors in a venture financing deal. The first is that they are the easiest deals to bang out quickly and cost-effectively, keeping the amount of legal work and negotiation on both sides to a minimum.

Finance 178
article thumbnail

Why Has LA Suddenly Gotten So Much Attention from VCs and Entrepreneurs?

Both Sides of the Table

billion 2013 figure) have been massive financings at Honest Company ($70mm), JustFab ($85mm), ZipRecruiter ($63mm) and lord only knows how much SnapChat has actually accumulated. Over the past 4 years LA’s tech fundings have growing at a 30% compounded annual growth rate (CAGR) which is > 4 times the US average VC CAGR (7%).

article thumbnail

Finance Fridays: Getting Started – Allocating Equity and Founder’s Investment

Feld Thoughts

Finance Friday’s gets off the ground with today’s post by introducing you to an imaginary startup, the entrepreneurs that we’ll being following throughout the series, and their first challenges: splitting up the founders’ equity and addressing the case where one of the founders provides the initial seed capital for the business.

Equity 137
article thumbnail

Convertible Debt: Worst Form Of Seed Financing — Except For All The Others

Gust

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. .” I won’t rehash all of the customary convertible note financing deal terms and points of negotiation here. (For

Finance 134