Remove Customer Remove Founder Remove Seed Money Remove Syndication
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Seed Stage Funding 101: What it Is & How it Works

The Startup Magazine

I will tell you brief details about seed stage funding, and deal sourcing on this page, so read the conclusion until the end. What exactly is the seed funding? The initial official fundraising round is called seed funding, and it comes immediately after the pre-seed investment stage.

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The Silliness Of Recapping Seed Rounds

Feld Thoughts

A company raises $1m of seed money from angels in a convertible note with a $6m cap. Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. ” They are running out of money.

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Understanding the Risks of VC Signaling

Both Sides of the Table

Chris Dixon provided some commentary on Twitter that he believes I missed “the most important point about fund size.&# He’s specifically referring to his point of view that entrepreneurs shouldn’t take seed money from “big VC’s&# (he defines them as > $100 million). You raised angel money.

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How to Fund a Startup

www.paulgraham.com

A typical startup goes throughseveral rounds of funding, and at each round you want to take justenough money to reach the speed where you can shift into the nextgear. I think it would help founders to understand funding better—notjust the mechanics of it, but what investors are thinking. Custom work doesnt scale.

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Diversification – The Alternative to Market Timing

Rob Go

We’ve invested in some SaaS companies that acquire early customers through a combination of inbound marketing, inside sales, and channe partners. Syndicate diversification. In some seed rounds, we invest mainly with seed investors and angels. We discovered the benefits of this through experience.