Developer Liquidation Preference Seed Capital Valuation 
K9 Ventures
JUNE 5, 2015
Low supply of companies with traction drove the valuations and deal sizes up. The risk here is what I refer to as the curse of over-capitalization. Seed stage was super tough. In that presentation, I said that Seed is not the first round of financing any more and that K9’s investments were mostly “pre-seed”.
Feld Thoughts
JULY 14, 2015
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. And developing a reputation for recapping seed rounds is, in my book, silly.
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