Both Sides of the Table

MAY 13, 2013

Let’s assume $2 million in seed money. If the money comes from professional investors it usually has a “liquidation preference” meaning that their money comes out before the founders or common stock. How about if we look at it from the “rest of company” perspective. Year in, year out.

Liquidation Preference 357

Liquidation Preference Early Stage Retention Lock-up Period 357

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). I like the way he thinks.

Venture Capital 265

Venture Capital Term Sheet Early Stage Silicon Valley 265

andrewchen.co

AUGUST 20, 2012

My reasoning looks something like this: Right now, startups with strong teams can easily raise seed funding ($200-$1.5M They can easily raise seed money because there’s a lot of willing investors in the ecosystem. And Android, and the rest of the smartphone industry). Here’s why the good times will continue.

Seed Stage 51

Seed Stage Early Stage Mobile Seed Money 51

www.paulgraham.com

OCTOBER 23, 2010

You could sense them squirming on the hook, but you knew there would be no rest for them till theyd signed up. If you build the simple, inexpensive option, youll not onlyfind it easier to sell at first, but youll also be in the best position to conquer the rest of the market. Ididnt realize that when we were raising money.

Startup 105

Startup Cofounder Software Stock 105

This is going to be BIG.

SEPTEMBER 7, 2012

In the late 90's, it wasn't surprising that companies with no revenue that were funded at 100 million dollar valuations didn't survive. If you're doing seed deals, how often does a down round in a seed deal even happen? But that's when you've actually proven this thing is a viable company and there's work worth protecting.

Later Stage 99

Later Stage Down Round Pre-Money Valuation Early Stage 99

pandodaily.com

NOVEMBER 29, 2012

The rest said companies are mostly still hanging on. If you are raising a seed round now, there are a few things you can do to protect yourself. There are still the same debates on whether or not you should take seed money from VCs. The rest takes care of itself. Entrepreneurs are survivors by nature.

Technical Review 93

Technical Review Silicon Valley Incubator Syria 93