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A Year in Review: 2016

Version One Ventures

In other words, any correction in public valuations happened quickly and has now stabilized. From Series A and onwards, fundraising takes longer and valuations are typically below the expectations and benchmarks of 2015. At the same time, seed money is still abundant due to the proliferation of micro VC over the past few years.

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The Corrosive Downside of Acquihires

Both Sides of the Table

Many buying companies price these deals on the basis of $1 million per engineer on the team for an early-stage deal. Usually the location of the engineers matters great so having offshore engineering makes acquihires unlikely. Let’s assume $2 million in seed money. Get some famous angel or seed money.

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How long will the “seed stage bubble” last?

andrewchen.co

My reasoning looks something like this: Right now, startups with strong teams can easily raise seed funding ($200-$1.5M They can easily raise seed money because there’s a lot of willing investors in the ecosystem. Not sure how investors feel about it though, as valuations skyrocket and competition becomes fierce.

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How to Fund a Startup

www.paulgraham.com

It wasnt because they werent accredited investors that I didntask my parents for seed money, though. When we were starting Viaweb,I didnt know about the concept of an accredited investor, anddidnt stop to think about the value of investors connections.The reason I didnt take money from my parents was that I didntwant them to lose it.

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How to Start a Startup

www.paulgraham.com

You make elaborate plans for a product, hire a team of engineers to develop it (people who do this tend to use the term "engineer" for hackers), and then find after a year that youve spent two milliondollars to develop something no one wants. Usually you get seed money from individual rich people called"angels."

Startup 105
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The Series A crunch is hitting now. Have we even noticed?

pandodaily.com

If you are raising a seed round now, there are a few things you can do to protect yourself. There are still the same debates on whether or not you should take seed money from VCs. Lastly, seed-stage entrepreneurs who have pushed for the maximum valuation possible haven’t done themselves any favors.