Genuine VC

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Four Winning Strategies from Series Seed to Series A

Genuine VC

The five conditions for a Series A financing which he enumerated are: a core team ready to scale, demonstrable market size, repeatable cost effective customer acquisition, metric momentum, and plausible monetization. But unfortunately these are neither necessary nor sufficient for raising that round, and are instead merely guideposts.

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Seed Stage Firms are Dead, Long Live Micro VCs

Genuine VC

These results are based on actual usage of product by early users, with resulting operating metrics which more than just validate a hypothesis. During an initial seed round, companies are able to test and validate live product/market theses. Seed-stage firms and super-angels institutionalizing are now more appropriately called Micro VCs.

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Seed Round Signaling Revisited: Myths, Truths, & Half-Lies

Genuine VC

Some are pre-product, while all the way on the other side of the spectrum, some have meaningful revenue and clear up-and-to-the-right metrics. “Seed stage” startups raising $1M-$2M rounds of pre-Series A capital come in very different flavors. Ability” to raise a subsequent Series A is only half the story. Better to be safe than sorry.

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Post-Seed Funding Checklist for Founder/CEOs

Genuine VC

Proactively solicit input to create a board deck template and metrics dashboard to present at the first Board Meeting, so that you’re able to set a strong in-control tone. Foundation for New Employee Hires Formulate and socialize with the Board acceptable compensation bands (both salary and equity options) for new employees.

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Fellow VCs: Here’s Where to Invest $1B+

Genuine VC

On the metric of capital raised, the rationale for the smaller figures is the same as the two points above, coupled with a more important fact that earlier in a company’s life-cycle it’s almost by definition likely to have raised smaller amounts.

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For Micro VCs, Quick Diligence Is Not Less Diligence

Genuine VC

Customer hypothesis gathering – Depending on the startup’s offering, these efforts involve calling potential customers which are end-users of a product, or understanding any early key usage metrics the startup may have already developed. Call initial customers/ reactions. Justify the investment internally.

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The Swinging Pendulum Between Distribution and Monetization

Genuine VC

However, for the past couple years, the metrics of “success” with early-stage digital media startups (especially consumer-facing ones) have clearly focused on distribution, as opposed to monetization. The stories of tremendous growth in adoption with the promise of revenue later on has been enough to excite both entrepreneurs alike.