article thumbnail

How a Seed VC Approaches Pre-Product Startups

View from Seed

We have a bias towards very early stage investing for a bunch of reasons, but it’s not easy. It’s often a good idea for founders to find a way to build something and get some early market validation before raising outside capital. I think this stage, more than others, is very dependent on the individual investor.

Product 120
article thumbnail

Angel Investors vs. Angel Groups

Business Plan Blog

Angels need to meet the Securities Exchange Commission’s definition of an accredited investor, which in their case is they need to have a net worth of at least $1 million and make $200,000 a year—or $300,000 a year jointly with a spouse. Download our free Raising Capital from Angel Investors eBook. What is an angel group?

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Knowledge Is Power: Convertible Note Financing Terms, Part I

Gust

Given that convertible debt financing has become the de facto standard for small (<$1MM), early stage deals in recent years, I thought I would write a primer on the elements of a term sheet and definitive documents for entrepreneurs looking at the earliest stage financing rounds.

Finance 178
article thumbnail

Building a new startup hub

Startup Lessons Learned

The companies I spoke to all agreed that the community there was extremely supportive, especially in the critical ulta-early-stage. Then, create an encouraging environment for early-stage companies. You dont need massive amounts of capital available for VC investment - modest amounts will do.

article thumbnail

When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

As the seed-stage startup fundraise process has received more transparency in recent years, ranging from published advice on how to raise seed capital to increased availability through AngelList, Funders Club, and various accelerator programs, I’ve noticed another trend emerging. Above-Market Value.

Valuation 336
article thumbnail

Rolling Closes Versus Synchronous Closes

Haystack

The point is — there are so many companies forming, and so many seed rounds, and so many different types of seed rounds, and so many little preferences around those processes, that is hard to know what is kosher and what is not. It’s hard to know. Payment may be delayed.

article thumbnail

Attorney and Startup Business Advisor – Aaron Shechet

SoCal CTO

I recently got together with Aaron Shechet and an early stage startup to discuss the direction the company might want to take. It was definitely challenging to make something like that happen in an academic environment. We occasionally get involved with very early stage startups. What are you working on now?