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Why LP’s Passed on Seed Funds 10 Years Ago (And What’s Happened Since)

View from Seed

And yes, a seed fund may have a tougher time holding on to their ownership down the road, and thus get diluted down. We’ve had multiple companies in our early funds that hit bumps and had to raise flat rounds, which hurts from a dilution standpoint but doesn’t wipe out our position. So yes, seed funds will own less. But guess what?

Dilution 399
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On Human Capital & Venture Capital

thebarefootvc

If there is an opportunity to bring in a syndicate partner that will add exponential value, it would be foolish to not include them. This is also what I advise entrepreneurs when discussing dilution and valuation — think of the bigger picture and the end game of what you are looking to build — and who will help you get there.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Similar to the explosion of seed funds in the past decade, we (and some limited partners too ) believe these Flexible VCs are on the forefront of what will become a major segment of the venture ecosystem. We detail below the major categories of VC: VENTURE CAPITAL TYPOLOGY. FLEXIBLE VC VS. OTHER VENTURE CAPITAL MODELS.

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Some Reflections on VC Investment Decisions

Both Sides of the Table

I was having dinner with a friend last night and we were chatting about venture capital and a bit about what I’ve learned. If we got an offer to raise $25 million to grow would she take it or be too worried about exit price, dilution, valuation expectations, etc. They worry too much about missing out on a deal.

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The Summer Solstice And Seed Stage Squeeze

Haystack

Those employees and operators, who often have some book wealth now (or are running syndicates on AngelList or acting as a scout for another fund) can easily dump $50K-$100K into one of their ex-colleague’s new startups, or put this money into their friend’s new startup, or their friend’s new hot deal.

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Texas Startup Manifesto 2.0

Austin Startup

In 2019 and 2020, we saw hundreds of millions of dollars in non-dilutive funding go to Texas startups, most of which had never worked with the government before. in the last four years we’ve seen a 250% increase in venture capital funding and have doubled the number of startup development organizations in our community.”

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Understanding the Risks of VC Signaling

Both Sides of the Table

This is part of my ongoing series on Understanding Venture Capital. I recently wrote a blog post on understanding how the size and age of a venture capital fund might affect you when you’re raising money. They said that they didn’t want the extra money or dilution. We took the $500k.