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The Corrosive Downside of Acquihires

Both Sides of the Table

Let’s assume $2 million in seed money. If the money comes from professional investors it usually has a “liquidation preference” meaning that their money comes out before the founders or common stock. I know the buyers try the best to believe that [insert well known founder name here.

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How to Fund a Startup

www.paulgraham.com

It wasnt because they werent accredited investors that I didntask my parents for seed money, though. When we were starting Viaweb,I didnt know about the concept of an accredited investor, anddidnt stop to think about the value of investors connections.The reason I didnt take money from my parents was that I didntwant them to lose it.

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How to Start a Startup

www.paulgraham.com

If you work your way down the Forbes 400 making an x next to the name of each person with an MBA, youll learn something importantabout business school. Because so little money is involved, raising seedcapital is comparatively easy-- at least in the sense of getting aquick yes or no. This is calledseed capital.

Startup 105
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From Nothing To Something. How To Get There.

techcrunch.com

Anti Matter Dude you are so on the money. Thus had to spend hard cash building a half way completed demo outsourced to India. You used to be able to raise venture money based on an idea and a team, but those days are long gone unless your name is Ev Williams or something similar. WOW, I hate the name.