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The Corrosive Downside of Acquihires

Both Sides of the Table

I’m supposed to believe that my best innovation can only come from scores of startup founders who just made millions and have now become CVOs at my company? Let’s assume $2 million in seed money. I talked about the math of this in this post, “ Is it Time to Learn or to Earn.”

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Why the New Seed Might Be a Bad Seed

This is going to be BIG.

So whereas seed rounds five years ago may have been less than a million dollars on a pre-money valuation of three or four million, today''s seed is up and over a million and usually closer to two million, with post money valuations nearing $10 million. in seed money instead of $1.5M

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Understanding a VC’s Seed Funding Policy is Critical

Both Sides of the Table

I think the issue was mostly framed initially by Chris Dixon in his article The Problem with Taking Seed Money from Big VC s. From the debate on VentureHacks, our offline chats and from our blog posts, I think that Chris Dixon and I are pretty much 98% aligned on the topic. But in all reasonable circumstances were in.

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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. Sure – it happens.