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Timing: When to raise seed funding.

Scalable Startup

High growth startup companies need seed money to get things going. They need the money to rent offices, hire staff, and establish their initial presence (website, incorporation, marketing). Pre-launch funding is pretty common in Silicon Valley, but that’s a unique case. They risk money they can afford to lose.

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The Corrosive Downside of Acquihires

Both Sides of the Table

Let’s assume $2 million in seed money. If the money comes from professional investors it usually has a “liquidation preference” meaning that their money comes out before the founders or common stock. I know the buyers try the best to believe that [insert well known founder name here. Does Yahoo!

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Let's All Shed Tears For The Crappy Startups That Can't Raise Any More Money

readwrite.com

Believe it or not this is actually a big story in Silicon Valley right now. For the past few years we’ve had people calling themselves “investors,” who have no experience investing, swanning around the Valley, slinging money at people calling themselves “entrepreneurs” who have never held an actual job, let alone run a company.

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8 Big Startup Myths That Hold Entrepreneurs Back From Success

crowdSPRING Blog

The highway of new ventures is littered with the remnants of businesses that started with tons of seed money but ran out with little to show for it. It started with a huge amount of hype, nearly 40 employees, and an equally large amount of cash: $41 million. A good example of this is the tale of the photo-sharing app Color.

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The Future of Web Startups

www.paulgraham.com

We could hire employees, but we want to be forced to figure out how to scale investing. Startup Hubs Will Persist It might seem that if startups get cheap to start, it will mean the end of startup hubs like Silicon Valley. If all you need to start a startup is rent money, you should be able to do it anywhere.

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From Nothing To Something. How To Get There.

techcrunch.com

Ian “go from nothing – no connections, no team, no money and no knowledge&# “join an awesome founding team&# How are you supposed to join/create an awesome founding team from scratch? Especially if you aren’t from around Silicon Valley. pentaxfan I love the article and picked up a few great tips!

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The Series A crunch is hitting now. Have we even noticed?

pandodaily.com

Meanwhile, the rash of early liquidity and recent IPOs — unsatisfying as they were — gave liquidity to thousands of employees at large companies, and a subset of those made very real money. A name like 500 Startups says it all. There are still the same debates on whether or not you should take seed money from VCs.