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. It says if you want to make “real” money - quit. Get some famous angel or seed money.

Liquidation Preference 357

Liquidation Preference Early Stage Retention Lock-up Period 357

Both Sides of the Table

MARCH 6, 2015

I was out to raise my first seed money in my second startup of $500,000. We went through the history of Fab, where Jeff was an early investor, and discussed many of the challenges they faced specifically by having too much money. It is, of course, a very recent phenomenon.

Seed Stage 150

Seed Stage Silicon Valley Syndicate Syndication 150

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).

Venture Capital 265

Venture Capital Term Sheet Early Stage Silicon Valley 265

Both Sides of the Table

AUGUST 1, 2010

I think the issue was mostly framed initially by Chris Dixon in his article The Problem with Taking Seed Money from Big VC s. If we can’t agree on price I tell entrepreneurs that they can raise money and say “GRP will speak for half of the round.&# Done – the only signal is positive.

Post-Money Valuation 298

Post-Money Valuation Term Sheet Warrant Partner 298

Both Sides of the Table

DECEMBER 9, 2013

If you’re a venture-backed tech company or even an early-stage business fueled by angel or seed money I assume you have a good group of board members or advisors who will give you time to be helpful and they want to be helpful. Deal with company admin: 409a valuations, approve stock options, vote on key measures (15%).

Advisory Board 337

Advisory Board Valuation Stock Options Seed Money 337

Both Sides of the Table

JANUARY 20, 2011

He’s struggling to raise money. People are raising in record times and with wacky valuations. His company had raised seed money already. I asked him what his valuation expectations were and he said he wasn’t fixated on that. It is not an uncommon story that this is happening but others are struggling.

Dilution 284

Dilution Valuation Seed Money Differentiation 284