Series Seed or Convertible Note? Which one is more founder friendly? Which one do investors prefer?


Assuming the company is able to make effective use of the seed money to greatly increase the value of the enterprise, all of that value therefore accrues to the founder, rather than the investor. For example, let’s say the “real” value of a startup is $900,000, a seed investor puts in $100,000 on a Convertible Note with a 20% discount, and the company then raises a Series A round of $1 million at a $4 million ‘pre-money’ valuation.

Entrepreneurshit. The Blog Post on What It’s Really Like.


As a startup founder you rarely have much money in your bank accounts. Maybe I need to do slightly later stage.”. Think about it – most entrepreneurs who manage to raise seed money or venture capital usually raise enough money for 12-18 months maximum. Sign up customers who are paying you money for a service you can’t 100% guarantee is going to be operational for the full period that they’re expecting. Raise money. Need money.

Monaco 101

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Entrepreneurshit. The Blog Post on What It’s Really Like.

Both Sides of the Table

As a startup founder you rarely have much money in your bank accounts. Maybe I need to do slightly later stage.” Think about it – most entrepreneurs who manage to raise seed money or venture capital usually raise enough money for 12-18 months maximum.

Monaco 155

Instead of sticking a fork in the venture market, realize. there is no fork

This is going to be BIG.

How would they know unless they surveyed a critical mass of startups all at the same stage now and then three years ago or so to compare? It's been said that long term returns are bad, but yet, where else are these institutions going to put the money to get growthy returns?

Who exactly are angel investors?

Startup Economy

For example, (this is a very rough estimate) Later-stage VC : usually participates in Series B/C/D after having seen the market traction and significant customer ramp-up. Early-stage VC : usually particiapates in Series A (and sometimes seed round on rare cases) to prove out the business model and test out the customer traction. Angel groups : So who comes earlier than early-stage investors? Angel groups and seed investors.

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

We know this: As many as a thousand companies who’ve received seed rounds won’t be around in a year — maybe six months. The number of seed and angel investors has exploded in recent years, buoyed up by a number of factors. Pando Daily. PandoMonthly. Video. PandoDigest.

To Follow On or Not to Follow On

This is going to be BIG.

That's why I constantly remind companies that when you do an outsized financing price or size-wise, you expose yourself to getting hit bad in a downtown unless you're conservative about how you use the money. So, the idea that it's a good or bad idea to follow on, or to play in certain stages versus others--honestly, it's a lot of marketing hype and anecdotal stories that really don't play out across the law of large numbers. If you're a multi-stage investor, I get this.

Understanding the Risks of VC Signaling

Both Sides of the Table

I recently wrote a blog post on understanding how the size and age of a venture capital fund might affect you when you’re raising money. invested in the seed round they have more inside knowledge than I do. Why are VC’s really doing seed deals? Seeds deals.

How to Fund a Startup

A typical startup goes throughseveral rounds of funding, and at each round you want to take justenough money to reach the speed where you can shift into the nextgear. At Viaweb we got our first $10,000 ofseed money from our friend Julian, but he was sufficiently richthat its hard to say whether he should be classified as a friendor angel. The advantage of raising money from friends and family is thattheyre easy to find. The problems are different in the early stages.

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

Venture Hacks

The topic was VC signaling in seed rounds — and how these signals help or hurt your ability to raise money in the next round. SlideShare: VC signaling in seed rounds. Chris Dixon: The problem with taking seed money from big VCs. VC signaling in seed rounds.

This Week in VC with @VCMike Hirshland of Polaris Ventures

Both Sides of the Table

One of the most difficult things to do as a first time entrepreneur is to get to know the investors you might be working with if you accept money. So how is Mike able to do this at a time where others have warned against taking seed money from VC funds?

From Nothing To Something. How To Get There.

This is the first post in what’s going to be a series of blogs on how to go from nothing – no connections, no team, no money and no knowledge of how the startup industry really works – to operating a growing business. One of the things I do as a founder of a later stage startup is to meet with early stage entrepreneurs to help them get their companies going. If you want to waste nine months trying to raise VC money for that idea, great. No raising money.

Am I a Founder? The Adventure of a Lifetime. « Steve Blank

Steve Blank

Yet for every founder there are 10-20 other employees who take the near-equivalent risks in joining an early-stage company. If you’re not a founder (by choice, timing or temperament,) you may be an early employee or a later stage startup employee. I believe that founder, early and later stage employees require different risk/personality profile. And at this stage of the company rather than everyone doing everything, actual departments may begin to form.