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Tiered Valuation Caps

Austin Startup

Convertible notes/SAFEs are usually executed around times of maximal uncertainty for a company; the very early stages. However, there are circumstances in which founders know there are potential serious milestones on the short-term horizon that would dramatically influence valuation, but they need to close their seed money now.

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To Follow On or Not to Follow On

This is going to be BIG.

So, the idea that it's a good or bad idea to follow on, or to play in certain stages versus others--honestly, it's a lot of marketing hype and anecdotal stories that really don't play out across the law of large numbers. Some of this thinking is also driven by folks who aren't well connected to the rest of the later stage venture community.

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How to Start a Startup

www.paulgraham.com

Because so little money is involved, raising seedcapital is comparatively easy-- at least in the sense of getting aquick yes or no. Usually you get seed money from individual rich people called"angels." the seed stage, investors dont expect you to have an elaboratebusiness plan. This is calledseed capital.

Startup 105
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From Nothing To Something. How To Get There.

techcrunch.com

One of the things I do as a founder of a later stage startup is to meet with early stage entrepreneurs to help them get their companies going. For both companies, the initial traction enabled raising seed money to get them to a traditional VC investment.) Then, forget everything else, VCs included, and just build.