Startup Professionals Musings

MAY 19, 2014

To the investors, it means less dilution and lower overall risk. Putting your grant application intent and status in your business plan will greatly enhance your potential to get Angel funding for the interim. Research related tax credits and incentives.

Seed Money 242

Seed Money SBIR Dilution Government 242

Gust

MAY 11, 2014

To the investors, it means less dilution and lower overall risk. Putting your grant application intent and status in your business plan will greatly enhance your potential to get Angel funding for the interim. Research related tax credits and incentives.

Seed Money 164

Seed Money SBIR Dilution Government 164

Both Sides of the Table

JUNE 17, 2017

They both raised angel / seed money of $1.5 That management team might have decided that they wanted to maintain more control of their company, didn’t want new board members and didn’t want to take dilution. Stock option grants dilute your ownership in the company. The answer may not be known for many years.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Feld Thoughts

AUGUST 28, 2015

Given the amount raised, the new financing, and the cap, I would have asked the seed investors to waive the terms and instead accept a smaller percentage of the company than they would have otherwise gotten. When asked what the range I would give to the seed investors post financing, I said 10% – 15%.

Cap Table 70

Cap Table Seed Stage Angel Groups Dilution 70

Austin Startup

SEPTEMBER 10, 2017

This post assumes that, for a company’s early seed round, they’ve decided to use convertible notes or SAFEs; because the majority of startups do. SAFEs and Notes are optimized for speed and simplicity, with a cost of future uncertainty and dilution. They have their downsides, which are discussed in some of the above links.

Valuation 48

Valuation Dilution Silicon Valley Seed Stage 48

Scott Edward Walker

OCTOBER 28, 2014

“The way I always think about running a startup is also the way I think about raising money, which is: it’s a process of peeling away layers of risk as you go. So you raise seed money to peel away the first two or three risks.” Marc Andreessen (at 12:40). “In

Cap Table 67

Cap Table Cofounder Silicon Valley Venture Capital 67

Both Sides of the Table

APRIL 3, 2010

Chris Dixon provided some commentary on Twitter that he believes I missed “the most important point about fund size.&# He’s specifically referring to his point of view that entrepreneurs shouldn’t take seed money from “big VC’s&# (he defines them as > $100 million). We took the $500k.

Venture Capital 265

Venture Capital Term Sheet Early Stage Silicon Valley 265