YoungUpstarts
OCTOBER 28, 2015
Startups need to understand how to manage the seed money they receive from investors and VCs. Investors typically negotiate from a term sheet, which if not handled properly can create problems that can hurt or kill the startup’s chances when they do their Series A round of funding. .”
Both Sides of the Table
APRIL 3, 2010
Chris Dixon provided some commentary on Twitter that he believes I missed “the most important point about fund size.&# He’s specifically referring to his point of view that entrepreneurs shouldn’t take seed money from “big VC’s&# (he defines them as > $100 million). We took the $500k.
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Both Sides of the Table
NOVEMBER 18, 2012
Think about it – most entrepreneurs who manage to raise seed money or venture capital usually raise enough money for 12-18 months maximum. But why don’t you just give me the damn term sheet you promised so I can trust you even more. You hire them, you own them now. Hire fast, fire faster.
This is going to be BIG.
APRIL 16, 2018
You think you're getting this big fat check compared to the seed money you raised, but they're actually doing something more like dipping their toes in the water. It's like making a hire that you can't fire--so having the chance for multiple interviews over a longer period of time is important and to your advantage.
Both Sides of the Table
AUGUST 1, 2010
They either do too many seed investments (for which they can spend no quality time with any) or they treat it as an option (“if you succeed come back and see us and we’ll match any term sheet you get&# ) – they view it as a sort of “right of first refusal.&#. The signaling affect is overrated.
Gust
OCTOBER 2, 2014
Think about it – most entrepreneurs who manage to raise seed money or venture capital usually raise enough money for 12-18 months maximum. But why don’t you just give me the damn term sheet you promised so I can trust you even more. You hire them, you own them now. Hire fast, fire faster. Center seat.
www.paulgraham.com
APRIL 28, 2010
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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