Genuine VC

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Seed Stage Firms are Dead, Long Live Micro VCs

Genuine VC

In the sector of internet-enabled services where a majority of the Micro VC investment has transpired, startups can fundamentally do more with less. However, the causes of the Micro VC trend are more substantially attributed to the entrepreneur demand-side of the VC equation. That’s no secret.

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Seed Round Signaling Revisited: Myths, Truths, & Half-Lies

Genuine VC

Not all startups are the same. Seed stage” startups raising $1M-$2M rounds of pre-Series A capital come in very different flavors. The risk associated with raising a subsequent round of capital are different for different profile startups. The other is valuation of the next round of Series A financing.

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Signaling Pricing Expectations Early in Seed Investment Discussions

Genuine VC

By communicating pricing expectations with potential lead investors, I mean sharing either an “ask” or even stated floor for the pre-money valuation of the company (with a priced preferred round) or explicitly stating a valuation cap (for convertible note round).

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(First Annual?) List of Go-To Early-Stage Service Providers in the NextView Ventures Boston Portfolio

Genuine VC

Although these startups are very diverse businesses themselves, they face similar requirements (especially in that they’re currently all in the seed to Series B range of company stage). We would have loved to have it when we were getting started.”

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Optimizing Series A Fundraising Around…Partnership Buy-In

Genuine VC

Whether a startup’s initial Seed round is comprised of individual angels, seed-focused funds, larger VCs , or some combination of the three, when it’s time for the entrepreneur to raise a true Series A round, of course the goal is run a process to “optimize” it.

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Super Pro-Rata Rights Aren't Super

Genuine VC

The rationale for the negative effects of super pro-rata rights comes down to VC math in which the latter of the three dimensions for the next round - valuation, amount raised, and dilution % - already becomes artificially fixed. This scenario presents a number of troubling incentives. This scenario presents a number of troubling incentives.

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The VC Fundraising Timing Paradox

Genuine VC

Better to spend energy maximizing long-term valuation by building underlying business value rather than short-term optimizing a bidding process… so the intuitive thinking goes. With it, the startups’ fundraising has the best chance of being optimized, thus hopefully starting a virtuous loop around other aspects of the business.