Remove Entrepreneur Remove Finance Remove Post-Money Valuation Remove Seed Money
article thumbnail

Understanding a VC’s Seed Funding Policy is Critical

Both Sides of the Table

I’ve done 4 seed investments in the past year and they are 100% referenceable. Many firms do it in a way that can be more detrimental to entrepreneurs. If you don’t understand the concept of “signaling&# please read the blog post I wrote on Understanding VC signaling.

article thumbnail

The Silliness Of Recapping Seed Rounds

Feld Thoughts

A 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. Here’s the scenario.