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.
This is going to be BIG.
SEPTEMBER 30, 2012
This is a company that, according to the article, got term sheets from half of the VCs that expressed interest in the company. The industry has made it very easy for companies to raise seed money through online marketplaces like Angel List, accelorators. Not a bad close rate, I'd say--and a pretty great pay day.
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Feld Thoughts
OCTOBER 15, 2013
In addition to these eight criteria, all members follow the established ethos (give before you get; put entrepreneurs first) of accelerators in GAN, including a thorough review of an accelerator’s term sheets and numerous conversations to vet accelerator founders’ intentions and operational practices.
Startup Lessons Learned
MAY 31, 2019
Having been through the company-building process myself and after a decade in VC working with thousands of companies and negotiating hundreds of term sheets, I wrote this book to help demystify the process. First, the introduction of seed money as an institutional form of capital.
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.
Feld Thoughts
JULY 14, 2015
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.
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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