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How Many Angels is the Right Amount for a Startup to Have?

Both Sides of the Table

The right ones are invaluable additions. Another founder … “When I pitched the idea to Adam, he was super on board,” Mr. Sloyan said. If anything it felt like a public service to founders to me. Information Leaks are a Real Problem. Having too many investors can lead to information leaks. This is a hard one.

Cap Table 150
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Three Questions Founders Should Ask Scouts Before Taking An Investment

Hunter Walker

As Tomio Geron wrote in this week’s WSJ , At Homebrew , we don’t currently use Scouts, but generally welcome any investors into syndicates who can provide value to the founders. That said, I’ve got three questions that I recommend founders ask any angels participating in their rounds. Are you a Scout?

Founder 69
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The Truth About Investor Updates

Haystack

Would I hope all founders updated their investors, even if briefly? If a founder I’ve backed simply sends 5-7 bullet points per month with some key stats, metrics, and requests for specific connections and help, then over time I follow their “story” and it becomes a part of my daily vocabulary. Yes, of course.

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Should you go after value-add investors for your seed round?

Hippoland

Portfolio founder: There’s an investor who wants to invest about $500k. Portfolio founder: That’s the problem. This especially happens when founders start getting a lot of inbound requests from investors to meet, so they think that they have a lot of investor options. Major investor / information rights?

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Why You Don’t Want to Give Financial Information to All of Your Investors

Both Sides of the Table

We all can intuit the benefits to founders of these trends so there’s little reason to elaborate. I have blogged about some of the downside consequences of the changes and the private information I have says the consequences are much worse than is reported in the press since few people publicly talk about.

SEC 352
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What is convertible equity (or a convertible security)?

Startup Company Lawyer

” However, I believe that YC realizes that having debt outstanding that may need to be repaid is not a good situation for founders. For example, the Series Seed documents contain limited protective provisions, a right of first offer on future financings, a board seat, and information rights.

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Taking Corporate VC: When It Makes Sense

View from Seed

The round was heavily oversubscribed so the founders could choose their investment partners, but the founders decided to include NVIDIA a strategic investor. SoftBank has similarly invested at large scale and SoftBank alumni include founders of numerous VC firms across the world (USV, Foundry, Qiming in China, etc).