View from Seed

JANUARY 11, 2017

A startup can benefit in various ways from having a strategic investor involved in their company, but there are plenty of drawbacks too, both commonly known and more subtle. On the flip side, simply taking strategic investor capital because it’s there or it’s easier or cheaper than other capital rarely works out well for startups.

Strategic Investors 120

Strategic Investors Post-Money Valuation Seed Stage Cofounder 120

Seeing Both Sides

AUGUST 28, 2017

Note: my blog has moved to www.seeingbothsides.com. We typically advise our portfolio companies to avoid taking on strategic investors at an early stage for this very reason. Should early investors be allowed to participate in token sales and pre-sales and how should they treat their investors in those transactions?

Early Stage 20

Early Stage Equity Venture Capital Government 20

Seeing Both Sides

AUGUST 28, 2017

Note: my blog has moved to www.seeingbothsides.com. We typically advise our portfolio companies to avoid taking on strategic investors at an early stage for this very reason. Should early investors be allowed to participate in token sales and pre-sales and how should they treat their investors in those transactions?

Early Stage 20

Early Stage Equity Venture Capital Government 20

Growthink Blog

OCTOBER 7, 2011

One of Harrison's companies received early funding from a strategic investor (a large corporation). > Get compatible partners and employees. Likewise, you need to find great employees that have skills that you don't. Even if you're a great entrepreneur (e.g., Find multiple forms of funding early.

Business Plan 83

Business Plan Jordan Strategic Investors IPO 83

BeyondVC

OCTOBER 11, 2007

Two days ago it was Jaiku being bought by Google and this morning CBS announced that it is buying Dotspotter , a 10 month old gossip blog. As you do the right thing for your customers, you will do right for your investors, your employees, and ultimately yourself. At the end of the day, it comes down to two things.

Net Present Value 60

Net Present Value Strategic Investors Early Stage Revenue 60

www.mattbartus.com

DECEMBER 9, 2012

They had a strategic investor in the wings that wanted to invest, but the company thought they could get a higher valuation from the strategic. So they sold all the shares at a $10 million pre-money, but gave the investors enough warrants to drive down their effective pre-money valuation (as closely as possible) to $7 million.

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

VC Cafe

DECEMBER 8, 2010

The proceeds of this round will be used to scale operations, continue building its platform for real-time location data and move its headquarters from Israel to Palo Alto, California, according to the CEO’s post on the company blog, By The Waze. In 2010, Waze has been experiencing significant growth, most recently reaching 2.2

California 87

California Strategic Investors Video 87