A Bubble for Seed Stage Valuation

Angel Investing News

If investors fund the company at a later stage, after the company has met important milestones, the investors’ $0.5 Demand was extremely high during the Internet bubble (ending in 2001) and very low in 2007-09. Some business sectors are hot (Internet) while others are cooling (medical devices). Here are some important points for entrepreneurs to remember when raising seed/startup capital: Raise money far in advance of need.

The role of a Seed Stage VC

StartupCFO

Seed stage VCs come in all shapes and sizes. Knowing this, the best seed VCs will specialize in a few areas in order to stand out. But I believe all seed stage VCs serve one common purpose. That purpose is to get their seed stage companies Series A funded. Yes, smaller seed funds have more flexibility. The best seed VCs realize this and focus their efforts on getting portfolio companies Series A ready. Seed rounds are small.

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A Behind-the-Scenes Look at Our Recent Seed-Stage VC Investments

View from Seed

And since we will continue to look proactively at new seed-stage tech startups over the next few years, the question becomes: What, then, will these companies look like? The internet continues the disintermediation of content creation. The “Internet of Things”.

Israeli Tech Funding & Exits in 2012: Lots of Chutzpah but Show Me Your Instagram?

VC Cafe

Groucho Marx could have been talking about the Israeli hi-tech sector when he said “I made a killing on Wall Street a few years ago…I shot my broker”. In 2012, as Israeli exits topped $5.5 billion, [[ This is a content summary only. Visit my website for full links, other content, and more! ]].

Primer On Funding Trends for Early-Stage Startups

Startup Professionals Musings

If you are new to the entrepreneurial world of startups, you are likely confused by the terminology of seed-stage, lean startups, micro-VCs, and Super Angels. Seed-stage means promising companies that don’t yet have a revenue stream, and may not yet have a proof of concept.

I've Joined Launch Capital - DShen's Blogs

Dshen

To some of you, the news has been trickling out but now its time to do a real announcement: Yes, Ive left the ranks of angel investing and joined Launch Capital , a seed stage fund based out on the East Coast. To some of you, the news has been trickling out but now its time to do a real announcement: Yes, Ive left the ranks of angel investing and joined Launch Capital , a seed stage fund based out on the East Coast. Internet/Online (38).

Fearless (Baseless) Predictions for 2014

Mucker Lab

Apple finally decides to spend its cash hoard on buying internet companies instead of just on building cool campuses (RIP Cupertino Village and Fantasia? ). Market.

New Early Stage Financing Options for Entrepreneurs

Gust

If you are new to the entrepreneurial world of startups, you are likely confused by the terminology of seed-stage, lean startups, micro-VCs, and Super Angels. The good news is that he is all about helping early-stage startups. Series-seed round. Early-stage startup.

Introducing NextView III and Our Focus on the Everyday Economy

View from Seed

Internet-connected computing is an innovation wave on par with a few historical developments of the 18th, 19th, and 20th centuries. This view assumes that the internet follows a normal innovation wave — but i t doesn’t. Early-stage investing is still the only thing we do.

New Early Stage Financing Options for Entrepreneurs

Startup Professionals Musings

If you are new to the entrepreneurial world of startups, you are likely confused by the terminology of seed-stage, lean startups, micro-VCs, and Super Angels. The good news is that he is all about helping early-stage startups. Series-seed round. Early-stage startup.

First Half of 2011 Showed Boost in Later Stage VC Deals in Israel

VC Cafe

Mid stage companies accounted for the highest rate of investments in Q2 2011, attracting 44% of all capital invested and later stage followed, with 27%. Seed stage investments are down almost by half, accounting for 3% of investments in the first half of 2011, compared to 5% last year.

Chiron Health Raises $2.3 Million

SiliconHills

Chiron Health, which provides telemedicine healthcare consultation for doctors with patients remotely over the Internet, announced Wednesday it has raised $2.3 million in seed stage funding. The Austin-based company also released its iPhone and iPad app for patients. “The telemedicine industry has been experiencing enormous growth over the last 12 months, and video visits are […] The post Chiron Health Raises $2.3 Million appeared first on SiliconHills. Austin

The Paradox of VC Value-Add

Feld Thoughts

Or that it would have worked great if only the Internet bubble hadn’t collapsed. We deeply believe that the way companies are created and funded, especially at the seed stage, is radically changing on a permanent basis. Scott Maxwell of OpenView Partners had an awesome post up this morning titled The Truth About VC Value-Add. Go read it – I’ll still be here when you get back.

In a World of Startup How-Tos, What About Bucking the Trend? [Traction #37: Chad Laurans, SimpliSafe]

View from Seed

Today, we discuss how Chad built an Internet of Things-like product before that phrase existed, before the hype helps your marketing or fundraising, and before anyone was thinking about the connected home. Subscribe to the NextView blog for future episodes and more resources for seed-stage startups: nextviewvc.com/blog. Chad Laurans is the CEO of SimpliSafe, a large and growing tech company located in the Boston area.

Revenue = Product Market Fit

Agile VC

We invest in internet enabled companies at NextView and our portfolio is roughly equally split between consumer and B2B businesses. You will be benchmarked on revenue and paying customers when you seek Series A funding… conceivably even at seed stage.

The 2nd Annual List of Go-To Boston Startup Service Providers

View from Seed

More Things became Internetted of. This list is included as a part of our ever-increasing collection of Growth Guides — resources to help seed-stage startups execute — all of which can be found on a dedicated page here , including the list below.

The Next Bubble – Don’t Get Fooled Again

Steve Blank

Today, the signs of the new bubble are the Linked-In initial public offering (IPO), Facebook’s stratospheric valuation and the rapid rise of early-stage startup valuation. Some precursors to the bubble happened when Chinese Internet companies listed on United States stock exchanges.

Hardware, IoT, and the Long Arc of the Internet

Agile VC

How does physical stuff fit in with NextView’s investment thesis focused on the internet and the broad innovation wave it represents? For starters we take a very, very long term view of internet innovation (more on this below). The internet as we know it is 20ish years old.

Hardware, IoT, and the Long Arc of the Internet

Agile VC

How does physical stuff fit in with NextView’s investment thesis focused on the internet and the broad innovation wave it represents? For starters we take a very, very long term view of internet innovation (more on this below). The internet as we know it is 20ish years old.

The Question of Scale

Mark Birch

In the day, VC’s used to issue $5 million Series A checks as seed funding for entrepreneurs to build out something based on little more than an idea. This left a gaping hole in the early stage startup funding ecosystem. Problem was they were coming in with the late stage mentality.

How To Get The Right Investor To Fund Your Startup

Startup Professionals Musings

The key is understanding how potential investors see you, and especially how they view the maturity stage of your startup. Thus your startup maturity and growth stage is the primary key to success with potential funding sources. Future opportunity size doesn’t count in the early stages.

How to Find the Top VCs for the Investment You Need

Up and Running

Madrona focuses its efforts on funding early-stage companies, especially ones that they determine to have the potential to innovate and disrupt markets. e.ventures: e.ventures is a global venture capital firm that backs internet and software founders.

"We’re tracking 134 seed accelerators in 33 countries. These accelerators have funded over 2000."

Mark Birch

“We’re tracking 134 seed accelerators in 33 countries. These accelerators have funded over 2000 startups, and seed companies have raised over $1.6 One hundred of these companies have already sold for an estimated total of over $1 billion.” - “ Tracking Global Growth in Seed Accelerators ” via AllThingsD. This is not just happening or relevant for Internet tech either, but for medicine, agriculture, manufacturing, and other industries.

Fenwick & West - Internet/Digital Media and Software Industries Silicon Valley and Seattle 2010

Recent Buzzes - VC Experts, Inc.

We believe that in recent years there has been a significant change in the angel/seed financing environment primarily in the internet/digital media and software industries. The amounts raised in angel/seed financings have increased, and can exceed $1 million. Results of Angel/Seed Survey. Industry Breakdown: Internet/Digital Media. Lead Investor Background: Seed Funds [2]. Preferred Stock: Seed Funds. Convertible Notes: Seed Funds.

How To Match Your Startup Stage To Investor Interest

Startup Professionals Musings

The key is understanding how potential investors see you, and especially how they view the maturity stage of your startup. Thus your startup maturity and growth stage is the primary key to success with potential funding sources. Future opportunity size doesn’t count in the early stages.

Zhongguancun in Beijing – China’s Silicon Valley (Part 4 of 5)

Steve Blank

But what made the overwhelming impression for me was finding an entrepreneurial software cluster on par with the Internet software portion of Silicon Valley. Out of that total, they funded 967 Internet deals with $6.7 Out of that total, they funded 268 Internet deals with $3.2

How Do VCs Mitigate Risk In Their Investment Portfolios?

Ask The VC

Are VCs simply looking to diversify the type and stage of companies in which they invest, or do they employ other financial hedging strategies? The primary ways VCs mitigate risk are (1) time diversification, (2) stage diversification, (3), sector diversification, (4) pro-rata or over pro-rata investing over time, and (5) number of investments in the portfolio. Stage diversification: Some funds have an early stage and late stage investing approach.

2 Challenges of Startup Customer Development & How to Get Great Feedback Instead

View from Seed

But for a true seed-stage company or for folks just thinking about companies to start or products to build, I think surveys are generally terrible. A lot of great startup advice is often shared on the internet, but I find that this area is under-represented relative to how important it is. Step one in building a new company is the YC adage: “Build something people want.”. But how do you go about figuring out what people want?

What Are the Benefits of Stealth Mode for Startups, Really?

View from Seed

At NextView, some of the companies we invest in at the seed stage already have a meaningful public presence, while others choose to remain in stealth mode. And specifically when completing a seed round of financing, what are the implications? appeared first on The View From Seed.

Are We Entering 2013 in Crunch-Mode?

Genuine VC

According to all of the blogosphere chatter over the past month, seed-funded internet startups are entering this year gearing up for the now-near-infamous Series A Crunch. The CB Insights report specifically which came out just before the holidays put a bright light on the supply-demand imbalance of the seed-stage companies searching for Series A capital. Happy New Year and welcome to 2013.

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. The post Understanding Different Types of Angel Investors appeared first on The View From Seed

The Changing Structure of the VC Industry

Both Sides of the Table

The rise of “micro VCs” or seed-stage funds. 15 years ago we were at the peak of Internet hype with the launch of many over-capitalized businesses with a market size & opportunity was limited. 50x more Internet users (2.4

The Hitchhiker’s Guide to Boston Tech: 2016 Update

View from Seed

How about Jana , which brings internet access to the developing world and boasts 30 million global users? This is true when it comes to early-stage funding, but also as it relates to support platforms being built by local firms to help Boston-based startups.

2009 First VC Investments in Israel Down 50 Percent

VC Cafe

38% of first investments (29 firms) were made in Seed stage companies, compared to 28% in 2008. In terms of sectors, Internet and software continue to lead and clean tech first investments have declined in 2009 compared to the year before.

Never Raising Capital Ever Again

Genuine VC

Fairly often entrepreneurs will pitch investing in their seed-stage company, and it starts sounding great… interesting market… great team… notable early traction… until we arrive at the financials + fundraising slide and the projections state that this round of Seed financing is planned to be their last. Seed financing direct to long-term profitability is often both a realistic and laudable goal, especially given capital efficiency of internet-enabled startups.

2012 Valuation Survey of Angel Groups

Gust

Pre-revenue software, internet, mobile and telecom deals. Golden Seeds (NY, Boston, CA). In this survey, the median and the average for all deals, the software/Internet/mobile/telecom deals and for deals in the “other” category were essentially the same, while the average was much higher than the median for life science and energy/clean tech deals.

U.S. Venture Capital Has Its Biggest Quarter Since Dot-Com Days

allthingsd.com

In the largest sector, Internet, median deal size increased at every stage of funding for the first time ever, CB Insights said. Venture capitalists were particularly aggressive on early-stage investments in the second quarter. Skip to main content. -->. MarketWatch. MarketWatch.

17 Venture Capital Blogs You Should Be Reading

Up and Running

David Cohen is the founder and Managing Partner of Techstars, the #1 ranked internet startup accelerator in the world. As president of Y Combinator, the hugely successful seed-stage investor/accelerator, Sam Altman has a lot of knowledge to share.

Bitcoins & Benjamins: The Future of Work & Money

View from Seed

We’ve shared our thoughts on how the internet and associated digital technologies are creating massive shifts in home , apparel , and other categories. In its first two decades, the internet brought significant change to many aspects of personal finance — particularly retail banking, retail brokerage and asset management, payments, and consumer lending. As you may know, NextView now has a thematic investing focus on the redesign of the Everyday Economy.

Announcing NextView Ventures II

Rob Go

NextView Ventures II is $40M, twice the size of our first fund, and we continue to be exclusively focused on seed-stage companies pursuing internet-enabled innovation. We’ve often explained to entrepreneurs that the second fund of a venture firm is very much like the series A for an early stage company. For a seed stage venture capital firm, product/market fit comes down to two questions. First, the seed and early stage market continues to evolve.