Trending Sources

Glowforge’s $22 Million Financing

Feld Thoughts

We just led a $22 million financing in Glowforge. When we led a $9 million financing in Glowforge a little over a year ago, we were excited about the potential to do to the subtractive 3D printing world what we did with MakerBot in the additive / FDM 3D printing world.

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.”

Syndicate Funding on AngelList – A Company’s Perspective

Seth Levine's VC Adventure

A few months ago AngelList announced Syndicates - enabling investors on AngelList to create fund-like groups of investors to invest together in AngelList companies (following a single lead investor). How AngelList Syndicates (and FG Angels) Works.

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. million and is normally syndicated from one to three institutional seed investors or larger VC funds.

Why Angelist Syndicates is Great For the Boston Startup Community

Rob Go

I continue to think that seed/angel investing is a pretty local endeavor, and even more so when one is hoping to lead rounds or be instrumental to catalyzing a financing or boosting the long-term prospects of a company. Which is why I’m pretty psyched about Angelist syndicates, especially in relation to the Boston startup community. Enter Angelist Syndicates.

Early Seed Financing Terms Endure… Whether We Like It or Not

Genuine VC

Dharmesh Shah had a great post up last week about the lessons learned from raising a mezzanine round of financing. But the more meaningful reason that early financing terms endure into future rounds is that negotiation away from terms already in place are just that – negotiation. Earliest terms matter most, even and especially in the seed round, because they set not only the base literal structure, but also the “tone” for future financings.

5 Financial Professionals Every Entrepreneur Needs On Their Team

YoungUpstarts

Having the right team in place can make all the difference in how you manage your finances and allow your money to work for you instead of against you. Personal Finance Coach. Some will help analyze your big picture and help you set up a system for managing and reviewing your finances.

Chronic Under-financing of EU Start-ups Driven by Mindset

Babbling VC

I personally believe that one of the major drawbacks to venture capital in Europe is chronic under-financing and people skirt around this issue. Hence, financing rounds have been smaller (roughly a ratio of 5 to 1 when comparing US to EU). You could say the entrepreneurs aren't thinking big enough and hence aren't selling a vision worth financing with larger rounds. Even Dropbox and Etsy have done far larger rounds to finance their growth.

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Fifteen Personal Finance Tips For Making Sure You Are Better Off Four Years From Now

YoungUpstarts

by Eric Tyson, author of “ Personal Finance For Dummies “ Unless you’ve been living under a rock for the past few months, you know that the presidential election is just around the corner. When it comes to your finances, steady wins the race, no matter who is president.

Our First FG Angels Investment in OnTheGo Platforms Has Closed

Feld Thoughts

This morning we announced that we have closed a financing in OnTheGo Platforms via our FG Angels syndicate. On October 1st, 2013 we announced that we’d be forming an AngelList syndicate called FG Angels and making 50 seed investments through AngelList by the end of 2014. from our Foundry Group funds for this effort and decided to max out the syndicate at $500k / investment, or $25m total. would come from syndicate participants.

Syndicate Funding on AngelList – A Company’s Perspective

Seth Levine's VC Adventure

A few months ago AngelList announced Syndicates – enabling investors on AngelList to create fund-like groups of investors to invest together in AngelList companies (following a single lead investor). How AngelList Syndicates (and FG Angels) Works.

Time for a Change #24: New Ways To Finance Your Future

Active Garage

When thinking about financing your future, most people think of savings, investing, insurance, or financial planning. These are the disciplines that make up most what we think of as the world of finances. You can download the FINANCES MANDALA and follow it through the topics below.

Filling Out A Round: When It Matters, and When It Doesn’t

A VC : Venture Capital and Technology

Almost every financing I’ve been involved with over the years (seed, VC, growth, raising a VC fund) goes mostly like this: Struggle like hell to find a lead. I would not sweat the allocations/syndication decisions that much in a seed deal other than avoid troublemakers at all costs. VC rounds (Srs A, Srs B, Srs C) are generally where the syndicates matter the most. Find a strong lead who will take a board seat, manage the syndicate, and help you.

How to Evaluate Firms for a Seed VC Syndicate

Genuine VC

Term-driving investor approach – An entrepreneur finds a lead (quasi-)institutional venture investor to price and set the structure/dynamics of the round, working together to bring in additional syndicate partners (either/both other funds and individual angels). Active partner involvement level of lead partner post-financing – Venture firms approach involvement after a seed round wildly differently.

VC Syndicates: How Many VCs Is Too Many?

A VC : Venture Capital and Technology

But beyond the board, what about the syndicate? I've seen some recent financings where there were six or more VCs firms in the syndicate. We've been asked to participate in first round syndicates with four or more VC firms and we have not done that, at least yet. Most entrepreneurs don't want to dilute more than 25-33% for a single round of financing. If you have that many VC firms in your syndicate, then each one will own something like 5-7.5%

Understanding Different Types of Angel Investors

View from Seed

Pros of taking their angel money include the feeder system to venture financing of the next round and the vast network of portfolio CEOs which can be tapped into for connections and help. Cons: Potentially not much value-add beyond initial financing round.

Seed Round Signaling Revisited: Myths, Truths, & Half-Lies

Genuine VC

Yet even today, whether or not to take a (relatively) small check in a seed round syndicate from a multi-hundred million or even billion dollar fund is still a decision which takes quite a bit of consideration and sometimes consternation. It seems as though it’s been talked about ad nauseum in the blogosphere, but we see first-hand as entrepreneurs we’re investing in at NextView Ventures work through building their seed round syndicates, it really is a tough issue.

All I need is a lead

Taffy Williams

The result is that you fail to close on a financing. A valid lead investor may not wish to have your followers as part of the syndicate. Remember, your financing is not complete until the money is in the bank! entrepreneur Startup lead investor financing

Equity financing: great for rapid growth startups

Berkonomics

We’ve spoken of financing a young company through friends and family, known as “inside angels.” And even though angel groups syndicate their best deals within their respective associated networks, it is always best to apply to the angel groups nearest your physical location.

Get Ready For Q115 Fundraising Insanity

Feld Thoughts

So – I’ll start with that – this is not a prediction, rather it’s a hypothesis, which is as long as there isn’t a cataclysmic macro event, Q115 financing activity is going to be insane. The number of large, “later stage” financings are remarkable – both in size and velocity. We are syndication agnostic and are happy to continue to finance strong, later stage companies in our portfolio with or without new co-investors.

Transparent Funding Announcements

Feld Thoughts

No understanding of the human dynamics behind the financing. No underlying metrics that drive the financing. Recently, the gang at SalesLoft told the detailed story of their $10m financing. Kyle followed the tradition of extreme openness about the financing process that I think Rand Fishkin started with his post three years ago titled Moz’s $18 Million Venture Financing: Our Story, Metrics and Future. None of them covered the financing in any way.

Startup Data: 4 Strategies Changing the Speed & Size of Your Series A

View from Seed

Recently, we looked at our own portfolio at NextView Ventures to dig a little deeper on how startups actually raise that next round of financing. Startups with large, lifecycle VCs included in the seed round syndicate did not reach Series A faster than those who did not.

Pro-rata rights: the good, the bad and the ugly

Fred Destin

The classic term you are going to see in a nasty seed term-sheet is a right to take [50%] of the next round of financing or a right to own [20%] after your next round of financing. Push your syndicate onto Angellist and make it all transparent. Investors Venture Capital financing pro-rata startup Fred Wilson posted an article to explain the concept and value of pro-rata rights , with his usual elegance in making the concept clear.

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

View from Seed

With that in mind, let’s look at an illustration of these trends below, which demonstrates what’s been happening to early-stage financing rounds over the last 15 years or so. The reasons for the shift are: Late-stage financing froth.

Crowdfunding for start-ups: A durable trend or a bull market phenomenon?

Information Arbitrage

What started out as a way for a curated set of angels to invest in startups posting on the AngelList site has expanded to include the notion of Syndicates , investor groups headed by prominent angels who deploy capital pledged by themselves and others in a manner akin to a GP/LP construct. Syndicates have been thought by some to be directly competitive with venture capitalists, initially Micro VCs but then perhaps larger venture firms down the line.

How We Think About Values Versus Deeply Held Beliefs

Feld Thoughts

”) But at the end of 2013, when the JOBS Act became official and AngelList created Syndicates, we decided to understand the phenomenon better by participating in it. So, rather than sit on the sidelines, observe, and prognosticate about angel / seed investing, we created the FG Angels Syndicate on AngelList and have done around 60 seed investments in the last 18 months.

A Choir of Angel Investors Sing Different Parts

Genuine VC

PROs of taking his angel money are the feeder system to venture financing of the next round and the vast network of portfolio CEOs which can be tapped into for connections and help. PROS: Industry-insider who serves as a validator for the rest of the investment syndicate, extremely helpful advice and network connections. CONS: Potentially not much value-add beyond initial financing round.

Venture Outlook 2016

Both Sides of the Table

Of course they built protection into many of their financings that allows them downside protection against IPOs if the price is lower than the price they paid. And what many people don’t realize is that most syndicates get what is known as “deal-by-deal” carry.

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Venture Deals: Chapter 1: The Players

Ask The VC

While it might seem like there are only two players in the financing dance—the entrepreneur and the venture capitalist—there are often others, including angel investors, lawyers, and mentors. Any entrepreneur who has created a company that has gone through multiple financings knows that the number of people involved can quickly spiral out of control, especially if you aren’t sure who actually is making the decisions at each step along the way.

Pari Passu or F.U.little guy

Professor VC

Another area where I''m not sure I stand is with some of the more formal referral and syndication programs that are emerging now. AngelList (which I remain a big fan) also recently launched a syndicate program.

The Silliness Of Recapping Seed Rounds

Feld Thoughts

Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. 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. Here’s the scenario.

When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

Sharing these pricing expectations early with potential lead investors fundamentally qualifies your conversations, but it also runs the risk of prematurely losing a potential financing partner, or else it can reduce options to maximize your fundraise outcome.

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

View from Seed

Our investment size may differ slightly from one company to the next, but it tends to be driven entirely by situation-specific factors (needs of the company, syndicate composition, anticipated reserves, etc) … and not based on our belief.

UK VC trend points to smaller, less syndicated deals

Fred Destin

which is the lowest in 9 years Striking trend 2: syndication dropped below 60% to 54% for the first time in 10 years So many smaller deals done by single investors. The busiest investors were YFM (as a Group), Octopus Ventures, Amadeus and Finance Wales.See the impact of VCT and Regionals Levels of syndication dropped significantly to 54% (66%) of deals.

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

View from Seed

A few weeks ago, Manu Kumar wrote an excellent post detailing the current state of the seed financing landscape. You may actually need to raise a few financing rounds just to get to a series A, so think about the syndicate you are constructing (will they be loyal to you?),

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

Genuine VC

Today Code Climate is announcing that they’ve raised a $2M round of financing , led by us at NextView Ventures. 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 is the CEO of thoughtbot, a consulting firm that makes web + mobile apps for early-stage startups.

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Some thoughts on startup crowdfunding

Chris Dixon

Startup financings tend toward the extremes of being very oversubscribed or very undersubscribed. And if you go back and look at the early financings of breakout hits, a lot of them were hotly contested and oversubscribed. If those amateurs were part of a syndicate, the syndicate lead would have felt pressure to drop them, at least for those hot deals.

Too Many Seed Investment Choices

Feld Thoughts

We are syndication agnostic – happy to invest alone and equally happy to invest with firms we like to work with. Many of these companies raise less than $3m coming out of TechStars – all of them are subsequently in our zone for the next round financing. Yesterday I sent emails out passing on participating in two seed rounds for companies I really like.

VCs in seed clothing: Chris Dixon, Mark Suster, and Naval Ravikant interviewed

Venture Hacks

So you could do that with $5,000 or something, as opposed to $20,000 for an equity financing. Number one, if you want GRP to price the round and lead the round, I am as Brad Feld calls it, “syndicate agnostic.”

35 at 15

OnlyOnce

First we announced a $35mm financing led by Vista Equity Partners, an exceptional private equity firm that I’d never heard of before the middle of the fundraising process a few months ago. This was a big week for Return Path.