Unusual Rounds of Early-Stage Funding & What to Know

Genuine VC

While there has been much discussion about the variances on syndicate composition and structure, and of course pricing variance, but essentially the “deal” is becoming fairly standard for all parties. The standard seed round will buy the company 12 to 18 months of runway as it looks to prove out early-stage milestones to raise a Series A before running out of cash. The post Unusual Rounds of Early-Stage Funding & What to Know appeared first on GenuineVC

Is @AngelList Syndicates Really Such a Big Deal?

Both Sides of the Table

If you track the venture capital industry it would be hard to miss the conversation going on this week over AngelList “Syndicates.” My favorite new VC blogger, Hunter Walk, weighed in with some thoughtful comments about how Syndicates might actually pit, “ angel vs. angel.”

7 Seed-Stage Funding Sources To Finance Your Startup

Startup Professionals Musings

I challenge any entrepreneur, for example, to define the difference between "seed-stage" and "early-stage" financing. Asking for early-stage money before you have customers and revenue will likely kill your credibility with real investors.

Splitting vs. Expanding the Pie: Thoughts on the New Early-Stage VCs in Boston

Rob Go

Recently, I’ve been spending a fair bit of time with a number of the new early-stage investors in Boston. As more early-stage investors emerge in Boston, some folks have asked me whether I feel any discomfort around the many new “competitors” on the scene.

Three New Types of AngelList Syndicates I Hope to See

Hunter Walker

So far most of the top funded AngelList Syndicates look, well, not surprising. Additionally, funds such as Foundry Group and Google Ventures have taken their own approaches – the former creating a separate early stage entity , the latter encouraging their seed stage partners to create standalone personal syndicates. As part of my seed fund Homebrew , we were also one of the first VCs to co-lead an investment alongside an AngelList syndicate (see Shyp ).

Ending Our FG Angels Experiment

Feld Thoughts

After two years of a dedicated experiment, we’ve decided to stop making new investments via our FG Angels Syndicate. The Monday after AngelList announced their Syndicate product in September 2013 we decided to to jump in with both feet and start FG Angels. As a result, we were one of the very first syndicates and the first VC firm to create a syndicate. It took a few months for AngelList to gear up Syndicates so that they actually worked.

The Perverse Incentives of Angelist Syndicates

Rob Go

I was chatting with Nick Chirls from Betaworks recently and we talked a bit about Angelist syndicates and the incentives surrounding it. Betaworks was one of the first investors to use Syndicates on the platform in their investment with Estimote (a really cool company, BTW). Nick reminded of an interesting perverse incentive that syndicates creates. Essentially, Angelist syndicates creates an incentive to: Invest a little less. Now let’s say I’m an angelist syndicator.

Smoke vs Fire: Handling ?Preemptive? Interest From VCs ? AGILEVC

Agile VC

Startups in NextView’s portfolio frequently receive inbound interest from other VC investors who are intrigued about what they’re doing, and I often talk with other early-stage entrepreneurs how to approach similar situations. How to Evaluate Firms for a Seed VC.

The Importance of Robust Angel Ecosystems

VC Adventure

Clearly access to capital at this stage has been, and continues to be, critical to the success of the Colorado (and national) startup ecosystem. AngelList Entrepreneurial Ecosystems angel capita angel investing angellist angellist syndicates FG Angels

Launching FG Angels To Make Investments on AngelList

Feld Thoughts

We’ll be doing this via AngelList’s new Syndicate approach through an entity called FG Angel where we will create a syndicate of up to $500,000, allowing others to invest $450,000 alongside anything we do. Foundry Group ) can create the syndicate in the future, at which point we’ll move the activity over to there. As of today, we have a new way for people to invest alongside of us – via AngelList’s syndicate.

The Opportunity / Growth Fund Trend

Feld Thoughts

With yesterday’s announcement that early-stage VC Greycroft has raised a $200 million growth fund , this type of fund has officially become a trend. ” Prior to this, plenty of VC firms invested across the early stage to late stage spectrum from the same fund (e.g.

Announcing Techstars AngelList Funds for Mentors and Alumni

Feld Thoughts

Today we’re happy to announce a new partnership with AngelList to offer Techstars mentors and alumni an exclusive opportunity to invest early in accelerator companies. The AngelList funds will give mentors and alumni early investment access while providing companies with additional early stage capital. At Foundry Group, we learned a lot by running our own FG Angels syndicate. AngelList syndicates helps enable seed stage investing at scale.

Pioneer Square Labs – Investing More In Seattle

Feld Thoughts

At Foundry Group, we’ve experimented with lots of different things around company creation and early stage investment. We’ve made over 60 investments through FG Angels – our AngelList syndicate – and are one of the most prolific investors on that platform. We’ve invested in over 30 VC seed funds and emerging managers, supporting even more investors and founders at the early stages. Pioneer Square Labs (PSL) launched today.

Our 2016 Foundry Group Fund and A Little History

Feld Thoughts

We subsequently raised a $225 million fund in 2010 , another one in 2013 , and a late stage fund in 2013. Except for our late stage fund, each of our funds has 30 investments (+/- 2) in it. We are syndication agnostic – we’ll invest with other VCs or invest by ourselves.

The Opportunity / Growth Fund Trend

Feld Thoughts

With yesterday’s announcement that early-stage VC Greycroft has raised a $200 million growth fund , this type of fund has officially become a trend. ” Prior to this, plenty of VC firms invested across the early stage to late stage spectrum from the same fund (e.g. Others had separate early stage funds and late stage funds, often with separate teams and economics (e.g.

Understanding Different Types of Angel Investors

View from Seed

We at NextView Ventures invest exclusively in a startup’s seed-stage round , meaning that many if not most of our deals are made alongside individual angel investors.

A Venture Capital History Perspective From Jack Tankersley

Feld Thoughts

The key reason for the explosion in capital flowing into the industry, and therefore the large increase in practitioners, had nothing to do with 1970’s performance, early stage investing, or technology. Secondly, the driver of returns for the funds raised in 1978 – 1981 was not their underlying portfolios, at what stage, or in what industries they were built. Some were Silicon Valley early stage companies, such as Apple, Quantum, and Masstor Systems.

Will Seed Funds Be Multigenerational?

Hunter Walker

” A great line uttered at dinner last night by one of the senior GPs at one of the best early stage funds. One question that’s been on my mind since we started Homebrew in early 2013 was whether seed venture would end up being multigenerational or not.

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10 Ways Entrepreneurs Find Money To Start A Business

Startup Professionals Musings

Variations on this theme include early licensing or white-labeling agreements. Most metropolitan areas have groups of local high-net-worth individuals interested in supporting startups, and willing to syndicate amounts up to a million dollars for qualified startups.

What Are Pre-Seed Rounds and Why Do They Exist?

View from Seed

It’s become increasingly common for startups to raise several seed rounds, and this has led to a bifurcation in the seed stage between what are known as “pre-seed” (or “genesis”) and institutional seed rounds. The proliferation of seed-stage investors.

Why Investor Titles are Important

This is going to be BIG.

The other day, I generated a lot of buzz and feedback around my assertion that calling yourself an “angel investor” should require a little more than small syndicate investments: You are not an angel investor if all your investments are less than $10k, made through @AngelList syndicates, and the founder doesn't even know who you are because you've never met.

The NextView Ventures Manifesto

View from Seed

It occurred to me that although we mentioned our new thematic approach when we raised our last fund in 2017, we haven’t really shared a broader manifesto about how we are approaching the early stage market. It’s been an interesting several years in the early stage venture eco-system, and the sands have shifted considerably. Belief #1: The best time to invest is early. And by early, we mean pre-traction.

Getting our Angel List On

VC Adventure

But AngelList ‘s announcement of “ Syndicates ” has done just that. Of course none of these writers know exactly how Syndicates (which in short creates the ability for angels on AngelList to build funding groups around a specific company and take a portion of the upside associated with the success of the company/investment) will really work and neither do I. The creation of Syndicates presents a great way to do this.

10 Tried-And-True Strategies For Funding New Ventures

Startup Professionals Musings

Variations on this theme include early licensing or white-labeling agreements. Most metropolitan areas have groups of local high-net-worth individuals interested in supporting startups, and willing to syndicate amounts up to a million dollars for qualified startups.

SBA 310

“Your Portfolio Is Your Path”

Haystack

Investing this early shouldn’t be an exercise in over-thinking, but some thinking and judgment is required. It’s not popular to admit, but I believe there’s really no way for very early-stage investors to control what deals they ultimately see. Luckily for me, it was early and it was a small fund — any mistake in there wouldn’t be a crater. You are the average of the five people you spend the most time with. You are what you eat.

Reading the Tea Leaves: Where Am I in My Seed Fundraise, Really?

View from Seed

So you should be looking for this level signal and, if you’re getting it, know that it’s in the early stages but progressing in the right way. This is particularly true at the seed stage where NextView invests.

A Choir of Angel Investors Sing Different Parts

Genuine VC

We at NextView Ventures often invest in a startup’s first round alongside other funds; either seed stage focused ones like ourselves or larger traditional firms. Addressing both of those issues can stem from the motivations as to why someone would want to put their hard-earned cash into a risky early-stage startup in the first place. PROS: Industry-insider who serves as a validator for the rest of the investment syndicate, extremely helpful advice and network connections.

The Silliness Of Recapping Seed Rounds

Feld Thoughts

But instead of adding it on to the note or doing an equity round with a price, which could still be an early stage price but below the cap, they make the argument that since the company couldn’t raise a round, the company is worthless. If I was leading a gang of friends (that’s what I called it before the word syndicate started to be used), and that gang had put in $200k alongside my $25k, I’d encourage my gang to do the same, and they often did.

5 Questions VCs Never Answer, Answered by a VC | #BOSSOI

View from Seed

If an investor seems to be looking for an endless string of proof points when you know that he or she has invested in companies at a similar stage in the past, it is a signal that their confidence in your team is lower than in some of these other cases.

Boston 305

8 Insights For Startups To Attract Angel Investors

Startup Professionals Musings

A better approach is to first understand who these people are, why and how they invest, and then focus on the ones who are the best match for your particular startup stage, location and industry. Early stage research and development won’t excite angels.

Let Me Count The Ways Entrepreneurs Fund Startups

Startup Professionals Musings

Variations on this theme include early licensing or white-labeling agreements. Most metropolitan areas have groups of local high-net-worth individuals interested in supporting startups, and willing to syndicate amounts up to a million dollars for qualified startups.

5 Myths About Building A Successful Brand And Business

YoungUpstarts

Explore content syndication opportunities to expand the reach of your blog posts. Even in the early stages of business ownership, reconsider trying to tackle every aspect of starting and running the company yourself. by Rachel Strella, founder of Strella Social Media.

VC Seed Funding Example: Trada

Feld Thoughts

In this case neither Niel (nor I) had any interest in creating a traditional syndicate to fund the company. We decided that we wanted to bring in some experts to help us with the business and together flew around pitching the business to a small handful of strategic angel investors to pull together a small syndicate that became the initial Trada investor base.

Goodbye Party Round, Hello Piggy Round: Should Seed Stage Founders Raise From Just a Single Investor?

Hunter Walker

Anecdotally, over the last 3-6 months we’re definitely seeing more examples of larger early stage or multistage funds offer to do 80-100% of a company’s seed round. I don’t have enough data to concretely pronounce this a trend, but I’ll throw some ideas out there about (a) why this might be happening and (b) whether it’s a good option for seed stage founders. Otherwise we’re eager to syndicate rounds with other great investors

As a new independent angel investor, how will I find new companies to invest in?

Gust

The two sites you mentioned are both secondary listing services, for later stage companies. Most are somewhere in between, focusing primarily on early-stage, high-growth companies with scalable business models. Groups also often “syndicate” investments, working cooperatively to fund larger rounds that are bigger than one group can easily handle alone.

Make Your Own Decisions

Feld Thoughts

We describe Foundry Group ‘s behavior as “syndication agnostic.” This is true at early stages but also true at later stages. Because we are syndication agnostic, we are delighted to work with great co-investors and welcome and encourage the interaction and partnership. We express our opinion early in the process and are supportive with whatever the entrepreneur wants to do.

The Market Is Hot for Code Climate, NextView’s Newest Investment

Genuine VC

Chad is the CEO of thoughtbot, a consulting firm that makes web + mobile apps for early-stage startups. Joining us in the syndicate are Lerer Ventures, Trinity Ventures, and Fuel Capital. When Chad Pytel introduced me to Bryan Helmkamp , CEO/Co-founder of Code Climate , I knew that I had to pay attention.

Chad 161

“Seed Is the New Series A” – Making Sense of the Confusion

View from Seed

Some funds (and angels) are explicitly trying to invest before seed rounds, which suggests there is a stage before seed. I think it’s also very instructive to know how often the investor leads early rounds and how large those rounds typically are.

What Is Venture Debt and How Should Startups Use It?

View from Seed

NVV: What stage of growth is appropriate for a company to have achieved prior to taking on venture debt? NVV: Let’s talk about the seed stage specifically. There’s been a lot of digital ink spilled around the various types of capital available to startups today.

Angel Bootcamp, The Blog Post: A Primer on Angel Investing

View from Seed

There are a lot of options to expand your deal sourcing, like AngelList, syndicates, angel groups, etc. There is no sub-prime market in early-stage investing.

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.

How ICOs will level the playing field for entrepreneurs

Hippoland

As an early stage investor, I know that if I can invest in a team that fits exactly what Ellen describes (OR MIT / Stanford, OR Facebook / Google, etc), I’ll win in the short term. And since gains in most investors’ portfolios are on paper only and are not realized for 7-10 years, executing on this strategy is a short term win for early stage investors such as myself, even if companies die 5-7 years later…!

How the Seed-Stage VC Trend Began, The Downsides of Unicorns & Much More

Both Sides of the Table

*. If you are a 20-something tech entrepreneur you could be forgiven for thinking that seed-stage investors, Angellist Syndicates and widely available angel money always existed. Some quick highlights include: The Role of a Seed Stage VC.