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Seed Stage Funding 101: What it Is & How it Works

The Startup Magazine

Having the right people that will become your helping hand in building future success is essential. pexels You need to have enough resources by having a seed-stage investor who will financially support your company in the long run. What exactly is the seed funding? What is the Evaluation of the Funding?

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Tiered Valuation Caps

Austin Startup

TL;DR: Using a “tiered” valuation cap structure in a convertible note or SAFE can provide flexibility that bridges the gap between (i) what founders expect their company to be worth in the near future, and (ii) what investors are comfortable accepting now. Background Reading: The best seed round structure is the one that closes.

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Instead of sticking a fork in the venture market, realize. there is no fork

This is going to be BIG.

How else can you explain this headline matching a story about a professional social network still trying to explore revenues raising $17mm on an $80mm valuation? The reality is that, most of the time--like two thirds of the time--the venture market is totally open for good businesses to get fair valuations in reasonable turnaround times.

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A Year in Review: 2016

Version One Ventures

In other words, any correction in public valuations happened quickly and has now stabilized. From Series A and onwards, fundraising takes longer and valuations are typically below the expectations and benchmarks of 2015. At the same time, seed money is still abundant due to the proliferation of micro VC over the past few years.

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The Corrosive Downside of Acquihires

Both Sides of the Table

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. Get some famous angel or seed money. Go do a startup. Woo the press. I’m a VC.

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How the Seed-Stage VC Trend Began, The Downsides of Unicorns & Much More

Both Sides of the Table

I was out to raise my first seed money in my second startup of $500,000. If you want to understand the software trend that drove the creation of the seed-stage VC phenomenon I wrote about it that linked blog post but in short: cloud computing drove down the cost to create startups enabling a new category of investor.

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Why the New Seed Might Be a Bad Seed

This is going to be BIG.

So whereas seed rounds five years ago may have been less than a million dollars on a pre-money valuation of three or four million, today''s seed is up and over a million and usually closer to two million, with post money valuations nearing $10 million. in seed money instead of $1.5M