Gust

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Trends in Seed Stage Funding for Entrepreneurs

Gust

I’ve recently taken a look at seed stage funding by venture capitalists (VCs) and angel investors over the past five years. For VCs, I chose to look at all seed stage VC deals (from MoneyTree©) as well as those in five of the most active regions in the country. All Seed-VC. million in seed stage deals in 2010.

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What are the regulatory barriers preventing the emergence of a liquid market for equity in seed stage startups?

Gust

But by far the biggest issue is that the very essence of public markets (and what makes them “public”) is that the SEC mandates an enormous amount of transparency, including complete quarterly financial statements, complete publication of the company’s cap table including all significant shareholders, and so forth.

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New Early Stage Financing Options for Entrepreneurs

Gust

If you are new to the entrepreneurial world of startups, you are likely confused by the terminology of seed-stage, lean startups, micro-VCs, and Super Angels. Seed-stage means promising companies that don’t yet have a revenue stream, and may not yet have a proof of concept. Super Angels. Business accelerator.

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Why Startups Face Increasing Competition In Raising Series As And Bs

Gust

I’ve divided the companies into cohorts by the year they raised their seed investment. The chart shows the narrow funnel seed stage companies must pass through to raise a series A. First, the number of seed investments in the Crunchbase data has increased by 4x in 4 years.

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There seems to be a lack of long-term investment in startups. Why is the 3-5 year exit strategy more desirable than a 10-20+ year timeframe?

Gust

Precisely because seed stage investments in private startup companies are NOT Warren Buffet’s types of investments. As such, the returns on an early stage portfolio typically come from only one or two investments out of every ten.

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Angel Investors Do Make Money, Data Shows 2.5x Returns Overall

Gust

Angel investors often act differently than VCs, and the fact that VCs abandoned seed-stage investing doesn’t necessarily mean they did so because seed investments are inherently less compelling. (A Let’s take a look at the actual data.

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Convertible Debt: Worst Form Of Seed Financing — Except For All The Others

Gust

How to finance a new seed-stage startup? ” Ressi in particular seems to be passionate about removing the “debt” component from convertible debt seed financing transactions. Convertible debt? Convertible equity? As of August 2010, Paul Graham famously proclaimed , “Convertible notes have won.

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