Remove Differentiation Remove Early Stage Remove Partner Remove Pre-Money Valuation
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Vulture Capital: Why Early Stage VC Could Kill Your Startup

The Startup Magazine

While the rewards may be a boon to their company in the short term, the consequences of accepting outside funding too early can be debilitating. There’s a reason why I refer to early-stage VC funding as vulture capital, and to be honest it’s pretty accurate. Money in Exchange for Control.

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The Changing Structure of the VC Industry

Both Sides of the Table

Limited Partners or LPs (the people who invest into VC funds) have taken notice as 2014 is by all accounts the busiest year for LPs since the Great Recession began. pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights.

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What to Expect When You're Expecting Venture Capital Returns

This is going to be BIG.

Do seed investors have Limited Partners with different return expectations than Series A and beyond investors? I'd say no--they're taking money from the same endowments, high net worths and pension funds as everyone else. I've never heard any limited partner ask me if I can generate a better return than their Series A funds.

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Time is the Enemy of All Deals

Both Sides of the Table

We were trying to optimize around a few criteria: price, size of round, number of syndicate partners and, of course, terms. million at a $15 million pre-money valuation. Had I delayed my fund raising in 99/00 by even 3-4 weeks I’m convinced I would not have raised any money at all. Yes, this was stupid.