Both Sides of the Table

APRIL 27, 2014

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

Cofounder Syndicate Syndication Early Stage 374

Both Sides of the Table

APRIL 3, 2010

I believe these VC funds have suffered some amount of reputation fall out. So if a VC wants to work with really talented early-stage entrepreneurs there are times where they have to be willing to seed fund them in order to be in the deal. They said that they didn’t want the extra money or dilution. Seeds deals.

Venture Capital 265

Venture Capital Term Sheet Early Stage Silicon Valley 265

www.paulgraham.com

APRIL 28, 2010

So if youre going to sell cheap stockto eminent angels, do it early, when its natural for the companyto have a low valuation. Some angel investors join together in syndicates. Sometimes angels deal terms are as fearsome as VCs.Other angels, particularly in the earliest stages, will invest basedon a two-page agreement.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Feld Thoughts

JULY 14, 2015

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. Here’s the scenario. So they recapitalize the company.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70