Remove Dilution Remove Early Stage Remove Finance Remove Syndication
article thumbnail

Why LP’s Passed on Seed Funds 10 Years Ago (And What’s Happened Since)

View from Seed

It turns out capital is not a weapon, especially in the early stages of building a business, and even experienced founders who can raise huge sums often realize this and right-size their asks. And yes, a seed fund may have a tougher time holding on to their ownership down the road, and thus get diluted down. But guess what?

Dilution 399
article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Seed-stage compatible: Like traditional equity VC investors, Flexible VCs accomodate early-stage investment risk within their portfolios better than a traditional RBI funder. Coinvestors: Flexible VC terms have not been standardized, which may make the investment harder to syndicate. Short track record. Cash collateral.

Insiders

Sign Up for our Newsletter

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

article thumbnail

What Are Pre-Seed Rounds and Why Do They Exist?

View from Seed

There are a number of factors that have contributed to the rise of pre-seed rounds, but the strongest have been the frothy late-stage financing market, coupled with both the scaling-up of some of the early winners in the institutional seed ecosystem and the scaling-down of some larger funds that retrenched after the financial crisis.

article thumbnail

“Seed Is the New Series A” – Making Sense of the Confusion

View from Seed

A few weeks ago, Manu Kumar wrote an excellent post detailing the current state of the seed financing landscape. I think it’s also very instructive to know how often the investor leads early rounds and how large those rounds typically are. Over time, the frenzy around momentum and growth stage financing will calm down.

article thumbnail

ProfessorVC: Touched by an Angel

Professor VC

One of my comments was that we would likely see more institutionalization of angel groups and syndication of deals among groups. He then went on to say that this type of financing was good for the entrepreneur (vs taking VC money) because they got to keep more of the company. I also teach Entrepreneurial Finance at San Jose State.

article thumbnail

Texas Startup Manifesto 2.0

Austin Startup

In 2019 and 2020, we saw hundreds of millions of dollars in non-dilutive funding go to Texas startups, most of which had never worked with the government before. At the same time, early-stage companies are thinking beyond the high prices of Silicon Valley to put down roots and find financing and growth partners.

Texas 90
article thumbnail

ProfessorVC: How much is enough?

Professor VC

Financing, that is.I One truth of start-up financing is that it generally takes twice as long and twice as much money to accomplish your milestones. Most companies dont come close to their rose colored financial models prepared when going out for Series A financing. As I said up front, I have mixed emotions about the financing.