Remove Dilution Remove Early Stage Remove Founder Remove Syndication
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Why LP’s Passed on Seed Funds 10 Years Ago (And What’s Happened Since)

View from Seed

The objection goes something like this: “yes, I can see rookie founders turning to you for a seed round. But won’t all good founders go to established firms that raise series A’s out of the gate?”. 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
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Every Flexible VC structure allows founders to access immediate risk capital while preserving exit, growth trajectory, and ownership optionality. . Flexible VC 102: Variations.

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What Is Venture Debt and How Should Startups Use It?

View from Seed

What is it, and how should founders think about it? note: We’d like to be extra clear that founders should not take on venture debt if they don’t have 100% visibility into repaying the loan, as banks that need to recoup their loan my force the company or you as the guarantor into liquidation or bankruptcy.

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Some Reflections on VC Investment Decisions

Both Sides of the Table

Seed investors are aplenty and of course they need downstream money to fuel their early-stage bets. I told my friend that I felt that in 2014 too many new VCs feel the pressure to chase deals, to be a part of syndicates with other brand names and to pounce on top of every startup whose numbers are trending up quickly.

Cofounder 374
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The Summer Solstice And Seed Stage Squeeze

Haystack

When I put all of this together, what I see is: In the Bay Area, the seed stage is getting squeezed from all sides during this summer solstice of. 4/ Orthogonal Competition – I recently tweeted about a new breed of early-stage technology investor that has its roots in public equities (hedge funds, long/short, etc.)

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

View from Seed

With that in mind, let’s look at an illustration of these trends below, which demonstrates what’s been happening to early-stage financing rounds over the last 15 years or so. Series A investors invested quite early, often before product/market fit. FWIW, that is not how we operate.).

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

View from Seed

The cliff notes behind the idea is that what used to be considered a series A is now actually a seed round because… Capital efficiency allows founders to get further with less. Some funds (and angels) are explicitly trying to invest before seed rounds, which suggests there is a stage before seed. Where do I send the check?”