article thumbnail

Early Seed Financing Terms Endure… Whether We Like It or Not

Genuine VC

Dharmesh Shah had a great post up last week about the lessons learned from raising a mezzanine round of financing. When you compromise on terms in the early stages, you will have to pay the price in the later stages. It’s really interesting, but perhaps only applicable to a more limited set of entrepreneurs.

Finance 128
article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Seed-stage compatible: Like traditional equity VC investors, Flexible VCs accomodate early-stage investment risk within their portfolios better than a traditional RBI funder. Mezzanine lending (a rough comparable) has a 18-23% required rate of return. Inaccessible to great majority of early-stage companies.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

The New Venture Landscape

K9 Ventures

Instead, it was more of a result of over-funding at the seed stage. There was simply too much money coming in to the seed stage, which increased the supply of companies at the seed stage. The deal stage and sizes have changed dramatically. Seed is not the first round of financing any more.

Mezzanine 134
article thumbnail

The Pre-Seed FAQ

K9 Ventures

This post is intended to be a dynamic document, and I will attempt to update it from time to time with new questions that may arise or as financing trends evolve. And I sincerely hope that this post does a good job of addressing what Pre-Seed really is. Q: Define Pre-Seed? Q: What amount of financing is considered Pre-Seed?

article thumbnail

Changes in Software & Venture Capital – Part 2 of 3

Both Sides of the Table

I believe some VCs have entered the early-stage market as simply an option on future financing rounds. As some of the last generation of startups have gotten bigger many VCs have also chased later-stage investments that were traditionally dominated by growth equity or mezzanine funds. But obviously I’m biased.