My partner Seth Levine has a detailed post up today titled Trada – from the beginning that describes the creation and financing of Trada. In this case neither Niel (nor I) had any interest in creating a traditional syndicate to fund the company. Tags: Seed Financing angel financing Foundry Group seed trada VC MORE >>

syndicate of angels, each with a small amount of capital at risk in the project, is a much more appropriate source of capital for a company at this stage because the risk has been well syndicated among the group. When we participate in seed rounds, we most often do it by ourselves with a syndicate of high quality angels. MORE >>

PROs of taking his angel money are the feeder system to venture financing of the next round and the vast network of portfolio CEOs which can be tapped into for connections and help.  PROS: Industry-insider who serves as a validator for the rest of the investment syndicate, extremely helpful advice and network connections.  MORE >>

Why not use all the data in Crunchbase of financings of NYC companies over the past five years? And we got data for 814 venture financings since March 2005 worth a total of $3.1 To start, let’s look at all venture firms that have completed over 7 financings of NYC-based companies in the past 5 years. billion. MORE >>

My view is that company formation and growth is hard enough - one has to deal with market risk, technology risk, team risk, downstream financing risk, etc; therefore deals that layer "bad organizational/legal hygiene" as an additional risk factor into the investment evaluation tend to fail to secure investment. 2, or 19.2% of the company. MORE >>