Trending Sources

Early-Stage Startups Need Friends, Family, and Fools

Startup Professionals Musings

If you set around quietly waiting for someone you know to offer you money to fund a startup, you will probably have a long wait. Don’t be one.

8 Key Actions for Entrepreneurs Needing Early Money

Startup Professionals Musings

If you set around quietly waiting for someone you know to offer you money to fund a startup, you will probably have a long wait. Don’t be one.

What every entrepreneur should know about financing right now

Version One Ventures

The ability to raise money no longer determines one’s fate. At the same time, funding opportunities have expanded for early-stage start-ups. More money is flowing in from a new crop of angels, newly wealthy from a number of tech IPOs. You need to assess early on if your business is venture-fundable.

The Silliness Of Recapping Seed Rounds

Feld Thoughts

company raises $1m of seed money from angels in a convertible note with a $6m cap. 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. ” They are running out of money. It blew my mind.

How Investors Think About Valuation of Pre-Revenue Startups

SoCal CTO

A lot of my time is spent helping early-stage companies get to proof points so that they can raise capital. They might have some seed money and are thinking or raising a Series A based on success of an early release (MVP). Bill Payne is an expert on how early-stage investors should look at valuation.

7 Things You Should Know About Angel Investors

Fresh Inc.: The Staff Blog

You have more opportunities than ever before to raise seed financing. Here''s what you need to understand first. ventures in 2011.

Why You’re Not Getting the Most out of Your Board

Both Sides of the Table

should we cut staff early since our revenue isn’t growing? should we hire the head of a business unit who has turned out to be a bad seed?

Series Seed or Convertible Note? Which one is more founder friendly? Which one do investors prefer?

Gust

Assuming the company is able to make effective use of the seed money to greatly increase the value of the enterprise, all of that value therefore accrues to the founder, rather than the investor. Invested Interests convertible note entrepreneur investors series seed million valuation provided by the 20% discount of the note.

Making Sense of Seed Investment Data

Rob Go

There were a number of interesting articles published over the last week in response to Mattermark and CB Insight’s data around early stage financing activity. As a team, we’ve been thinking about what has been going on in the seed market in recent years. Third: The definition and dynamics of seed rounds have changed.

Mile-High disruption: Why Denver should be on your tech radar next year

The Next Web

Stuart Wall, CEO of Signpost , a local advertising platform funded by Spark Capital and Google Ventures. quality of life that beats Silicon Valley’s.

How long will the “seed stage bubble” last?

andrewchen.co

How long will the “seed stage bubble” last? @andrewchen. Read what Im reading · Featured essays. Thanks, and enjoy!

Seed and Later Investments for Startups are Booming

Startup Professionals Musings

Seed investments” are early stage financings (typically less than $1.5 Seeded companies will take longer to raise a next round.

Who exactly are angel investors?

Startup Economy

For example, (this is a very rough estimate) Later-stage VC : usually participates in Series B/C/D after having seen the market traction and significant customer ramp-up. Early-stage VC : usually particiapates in Series A (and sometimes seed round on rare cases) to prove out the business model and test out the customer traction.

Why the New Seed Might Be a Bad Seed

This is going to be BIG.

About a year ago, I started hearing about the existence of a "pre-seed" round. The term "seed" implies the very beginning to me.

Ungerminated: Trouble with Seeds

Passionate Intensity

Money is available, some will say, easy to get. Early signs of trouble. There’s nothing wrong with seed funding. Tweet.

Top Startup Advisor Paul Graham Just Warned Against Taking Google's Money

www.businessinsider.com

Your Money. Top Startup Advisor Paul Graham Just Warned Against Taking Googles Money. Money Game Select. Your Money Select.

What’s the problem with too much funding?

Version One Ventures

With the influx of seed money, much has been written about the fact that start-ups that are taking far more funding than they need. Being swamped with funding is a problem that most early stage companies would love to have. What’s the issue with too much funding? And that’s okay. Pitfall #2: Losing creativity.

Why the Series A Crunch Might Be a Good Thing

Fresh Inc.: The Staff Blog

In 2012, Rust and co-founder Garrett Johnson raised $2 million in seed funding in two weeks. million in seed funding in 2011 and 2012.

What’s the problem with too much funding?

Version One Ventures

With the influx of seed money, much has been written about the fact that start-ups that are taking far more funding than they need. Being swamped with funding is a problem that most early stage companies would love to have. What’s the issue with too much funding? And that’s okay. Pitfall #2: Losing creativity.

The best advice startups will never follow

Berkonomics

Let me tell you a few short hair-raising stories of entrepreneurs who have raised money and regretted it later.  Starting up Raising money

Why LA Is the New, Hot Place to Launch

Fresh Inc.: The Staff Blog

Selected start-ups will get four months of office space, training, mentoring and support, as well as up to $50,000 in seed capital. link].

How does Convertible Debt work?

Gust

Debt is a fancy word for a “loan” That is, I lend you money, and you agree to pay back the money that I loaned you at some known point in the future, along with a specific additional amount of money (called “interest”) which is your payment to me for having been willing to loan you money in the first place.

The Series A crunch is hitting now. Have we even noticed?

pandodaily.com

We know this: As many as a thousand companies who’ve received seed rounds won’t be around in a year — maybe six months. Video.

Why you shouldn’t keep your startup idea secret

cdixon.org

Another benefit of talking freely, is that you may also find potential partners or future employees–other key components beyond investment money. Quite early on, you will be able to differentiate yourself – and having competitors help you grow the market can actually be a good thing. cdixon.org - chris dixons blog. Hunch!

It Doesn’t Matter How Much Money You’re Raising, It’s Still Hard

Instigator Blog

More and more companies are raising money , and valuations seem to be skyrocketing. And in many cases the amount of money you’re looking to raise isn’t particularly relevant. When VCs are ready to get a new fund off the ground they have to jump to our side of the table and raise the money. Big money.

Why The Value Of The Fund-Raising Process Is Not Just The Funds

OnStartups

Raising Money Isn't About Raising Money. Our company has raised more than $600k in seed money over the summer. Dharmesh.

Understanding the Risks of VC Signaling

Both Sides of the Table

recently wrote a blog post on understanding how the size and age of a venture capital fund might affect you when you’re raising money.

Disruption Comes (Finally!) to Commercial Real Estate

Fresh Inc.: The Staff Blog

Mainly, they're here to share their plans for 42Floors and get feedback, given that New York will be an early market for them. Freedman winced.

Should Founders Be Allowed to Take Money off the Table?

Both Sides of the Table

If a company has reached a level of success, has been around for a few years and you believe the company has potential to break out into a much bigger company then you should let the founders take money off of the table.  It’s that simple. Not FU money, but “feed the family&# money. Only then are you truly aligned.

The Legal Side of Entrepreneurship

YoungUpstarts

Startups need to understand how to manage the seed money they receive from investors and VCs. Financing. ” The Cost of Financing.

Why You're Not Getting the Most Out of Your Board

Fresh Inc.: The Staff Blog

Should we cut staff early since our revenue isn’t growing? Should we hire the head of a business unit who has turned out to be a bad seed?

VCs in seed clothing: Chris Dixon, Mark Suster, and Naval Ravikant interviewed

Venture Hacks

The topic was VC signaling in seed rounds — and how these signals help or hurt your ability to raise money in the next round. Outline.

From Nashville to Boston: How A Startup Accelerator Changed Our Lives

OnStartups

We're passionate about solving online support for small businesses and got great early feedback from customers. Little History. How We Got In.

The Corrosive Downside of Acquihires

Fresh Inc.: The Staff Blog

The Aqui-hire Business Many buying companies price these deals on the basis of $1 million per engineer on the team for an early-stage deal.

How to Start a Startup

www.paulgraham.com

You need three things to create a successful startup: to start withgood people, to make something customers actually want, and to spendas little money as possible. The way a startup makes money is to offer people bettertechnology than they have now. Andyet theres a lot of money at stake. At this stage the company is just a bet.

How to Fund a Startup

www.paulgraham.com

typical startup goes throughseveral rounds of funding, and at each round you want to take justenough money to reach the speed where you can shift into the nextgear. At Viaweb we got our first $10,000 ofseed money from our friend Julian, but he was sufficiently richthat its hard to say whether he should be classified as a friendor angel.

To Follow On or Not to Follow On

This is going to be BIG.

That's why I constantly remind companies that when you do an outsized financing price or size-wise, you expose yourself to getting hit bad in a downtown unless you're conservative about how you use the money. If you're a multi-stage investor, I get this. Some big VCs are awesome at seed, and to a lot of work to help their companies.

Understanding a VC’s Seed Funding Policy is Critical

Both Sides of the Table

There has been much discussion about VCs doing seed funding in the past year.  I’ve written about it myself (Is VC Seed Funding Dead?)

How to find funding for your hardware startup while we’re waiting for the hardware revolution

Version One Ventures

Hardware requires time, money, and inventory. It feels like we are still in the early stage of the hardware revolution.

Angels or Devils?

Launching Tech Ventures

By Neda Navab At lunch this month, Ray Rothrock of Venrock threw out some crazy statistics: in 2012, 30,000 ideas received money from angel investors, while only 1,500 received Series A funding. That is, 5% of seed-financed companies were able to secure Series A! They could also take seed money from VCs.