Feld Thoughts

JUNE 9, 2021

Fred Wilson was his lead investor. I was the lead investor for Veripost. I’ve been working with Matt since 2000. That year, we merged two companies: Return Path and Veripost. Matt was the co-founder/CEO of Return Path.

Fractional CTO 70

Fractional CTO Cofounder Startup Lead Investor 70

YoungUpstarts

OCTOBER 12, 2017

To outside investors, the future of early stage and startup companies can be murky. When investors believe in the founders, products, or ideas they will provide companies with funding. Many of these companies are pre-revenue and in the cash burn stage as they try to establish their technology and market.

San Francisco 133

San Francisco Forecast Early Stage Term Sheet 133

View from Seed

JANUARY 27, 2021

But it is also large enough to write a $2M check to lead a post-seed round for companies that are starting to scale. What hasn’t changed is that our heart lies in working with founders to find product/market fit and to begin to grow.

LP 411

LP Early Stage Seed Stage Venture Capital 411

Rob Go

SEPTEMBER 4, 2018

Of the last 15 investments we’ve made, 8 have been pre-product or pre-seed style rounds. Lead investors are few. Leads that are true force-multipliers are exceedingly rare. Of the last 15 investments we’ve made, we’ve been the lead or co-lead investor over 80% of the time. . What’s the same?

North America 36

North America Seed Stage Early Stage Lead Investor 36

Both Sides of the Table

FEBRUARY 16, 2017

We felt proud to be the lead investor in Maker Studios at a sub $5 million valuation. Snapchat truly built an amazing product and an amazing community and anybody who knows me knows that I’m very active on it. I love this product & the community I’ve formed there.

IPO 214

IPO Los Angeles Technical Review Silicon Valley 214

ithacaVC

MARCH 9, 2017

I have now done 2 deals where there has been a lead investor (not CVF) who did not mind the “founder as sole board member” trap. We followed in line with the lead investor and went along with the structure. This was a HUGE mistake that I will never make again.

Seed Stage 58

Seed Stage Software Review Institutional Investors Lead Investor 58

View from Seed

FEBRUARY 26, 2020

In previous blog posts I’ve written about the two main approaches to building a seed round syndicate – the subscription method (where an entrepreneur presets a structure with a convertible note or SAFE and recruits investors who subscribe to the round, all without a term-driving lead investor) and a term-driving lead investor approach.

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Syndicate Syndication Lead Investor Venture Capital 257

View from Seed

JUNE 11, 2019

Aside from the early commitments, the next most important thing to focus on is nailing down your lead investor. I’ve found that the lead investor will end up doing 90% of the work for a startup (or will cause 90% of the pain if you get the decision wrong). Often one of the leads in the mix is a larger, multi-stage fund.

Syndicate 202

Syndicate Syndication Seed Stage Lead Investor 202

Feld Thoughts

MAY 3, 2010

A complete and total obsession with the product”. The great companies that I’ve been an investor in share a common trait – the founder/CEO is obsessed with the product. Every discussion trends back toward the product. Product, product, product. They start with the product.

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Product Cofounder Lead Investor Software 148

Gust

SEPTEMBER 27, 2014

In order to be competitive, a company needs to have just about everything in place, from its product to its team to market traction, before it is ready to seek funding. Your private profile is where investors will look with a critical eye on everything that makes you a business rather than just a product or a sexy idea.

Angel Groups 159

Angel Groups Elevator Pitch Software Review Deal Flow 159

YoungUpstarts

MAY 1, 2020

Most startups will need a viable product and proof of credibility before they can expect early-stage investors to really bite. The most common fundraising mistake I see is when early stage entrepreneurs focus all their attention on trying to secure a $1 million check from a lead investor.

Early Stage 165

Early Stage Security Angel Investor Lead Investor 165

Both Sides of the Table

FEBRUARY 15, 2016

I know it sounds obvious but just so you understand: There are more capital sources available for earlier-stage capital, the information on which they are evaluating the investment is less (it is almost certainly just team and product) and the risk of the investor getting things wrong is diminished.

Burn Rate 150

Burn Rate Cap Table Valuation Software Review 150

Both Sides of the Table

JULY 7, 2015

And from Nancy Hua … “Too many angels can also hurt a start-up and be taken as an indication that a company is not strong enough to attract any one “lead” investor, said Ms. With strong leads (VCs, seed funds or large angels) there is an unwritten Pottery Barn Rule. Every great investor knows this.

Cap Table 150

Cap Table Cofounder Silicon Valley Startup 150

Lightspeed Venture Partners

APRIL 12, 2016

His full time job is CEO of Cheddar , the OTT video company he founded, and where Lightspeed is the lead investor. In addition, Jon Steinberg has also joined us, as a Venture Partner. In Venture Capital as in rugby, a well functioning team is so much more than the sum of its parts. As a team, the next ten will be even better.

Technical Cofounder 60

Technical Cofounder Cofounder SCRUM Committed Capital 60

View from Seed

SEPTEMBER 23, 2019

In short, sharing pricing expectations early with potential lead investors fundamentally potentially qualifies your conversations, but it also runs the risk of prematurely losing a potential financing partner, or even reduce options to maximize your fundraise outcome.

Cap Table 211

Cap Table Seed Stage Valuation Dilution 211

Both Sides of the Table

SEPTEMBER 23, 2010

So to be clear I think in the overwhelming majority of cases these are diligence calls to feel out the opportunity in which price discussions exchange hands more as a by-product of the call than the intention of the call. When I was fund raising for my second company we had agreed a company-wide deal with Salesforce.com to use our product.

Entrepreneur 292

Entrepreneur Technical Review Stealth Valuation 292

The Startup Magazine

AUGUST 18, 2017

The opening keynote session will define directions on Aligning the Role of Government Policymakers, Incumbent Banks, FinTech Innovators, Investors, Multilateral Agencies, MNOs and the Private Sector to Create a Dynamic Ecosystem for FinTech in Africa.

Africa 62

Africa Ethiopia Elevator Pitch Technical Review 62

techcrunch.com

APRIL 26, 2013

First, AngelList Invest is available to any company on AngelList that has a top-tier lead investor. And the lead investor has to be putting in at least $100,000 in capital, says Ravikant. As Smartphones Reach A Global Tipping Point, Why Your Product Isn't As Simple As You.

SEC 61

SEC Accredited Investor San Diego New York City 61

ReadWriteStart

JULY 18, 2011

Think about it that way, filling up their shelves with product. I look for a smart ass team, building a kick ass product, in a big ass market," he said. Clavier says this much: alpha release of product/service potential funders can touch. How many seed investors should you take money from?

Investment Bankers 153

Investment Bankers Technical Review Cofounder Due Diligence 153

A Crowded Space

OCTOBER 3, 2018

Very shortly after I joined, Greg Gretsch (now my partner at Jackson Square Ventures) co-led oDesk’s Series A along with Venky Ganesan (partner at Menlo Ventures and lead investor in Rev.com). But you need simplicity to build a great enduring product and company. Since then, the company has gone through an amazing journey.

San Francisco 60

San Francisco Bangladesh Ukraine Philippines 60

Hunter Walker

DECEMBER 30, 2022

But, and I’m really belaboring the metaphor here, we also saw the venture industry move from bespoke beekeeping where the two parties are lovingly tied to one another, to industrial scale honey production. Neither Satya or I would continue doing this work if we were turned into passive investors, no matter the financial success.

Cap Table 67

Cap Table Venture Capital Cofounder Portfolio 67

View from Seed

DECEMBER 6, 2018

So learning which investors are comfortable with concept stage pre-seed vs post-product seed vs small Series A vs big “momentum” A is an important part of qualifying potential investors. Or a Series A investor will be explicit if they don’t invest at seed stage, and so on. When “Too Early” Isn’t a “No”.

Seed Stage 120

Seed Stage Early Stage Differentiation Lead Investor 120

Hippoland

APRIL 9, 2017

This leads investors to believe that there is something either really wrong with your business or that you, as a founder, are not sharp. You definitely need to be able to address this well, otherwise it will at best confuse an investor and at worst, make him/her think you’re a liar.

Cofounder 48

Cofounder Early Stage Software Review Naming 48

David Teten

SEPTEMBER 5, 2014

Over the past 15 years we’ve built this amazing membership to serve our core clients – leading investors, corporations, consulting firms, and nonprofits. Those interactions vary – from mentorship and product feedback to learning about unmet needs in a market or understanding whether a sales channel is worth pursuing.

New York 114

New York Technical Review Networking Advisory Board 114

Startup Professionals Musings

FEBRUARY 10, 2012

A good answer might be “We have several patents on the base technology, which is so robust that we expect to roll out new products every year for the next ten years, always staying a step ahead of our competitors.” That implies competitive now, a strong barrier to entry, and the potential to stay in the lead.

Viral 226

Viral Lead Investor Advertising Revenue 226

OnlyOnce

JULY 26, 2018

Or you negotiate the highest possible valuation from a new lead investor, only to discover that new lead investor, now on your Board, expects you to triple it in four years and is way out of alignment with the rest of your cap table. On the other side, what’s an example of a “good” loss?

Cap Table 61

Cap Table Lead Investor Valuation Reputation 61

Hunter Walker

JUNE 14, 2019

The six who didn’t go out for a Series A either (a) shutdown/acquihired prior to this milestone [founder disagreement; lack of product traction], (b) exited due to an early M&A opportunity or (c) in one case, is currently an ongoing concern that hasn’t needed to raise additional capital. Why do I raise this distinction?

LP 100

LP Early Stage Lead Investor Founder 100

Hunter Walker

NOVEMBER 21, 2018

Only Jason’s was in the “hard pivot” category that Fred describes (“Changing the product, market, and business entirely. But I’d suggest at the end of that they “re-pitch” their lead investor(s). And most recently, Jason’s, which he describes in the link above.

Founder 96

Founder Cap Table Seed Stage Cofounder 96

www.xconomy.com

JUNE 9, 2012

“The last thing you wanted was any more VCs like that,” says Coats, who began thinking that what lead VCs and entrepreneurs really want was additional venture investors whose participation would be less complicated—more like a co-investor—and who could decide on joining in a deal in a week or two.

San Diego 40

San Diego Venture Capital Technical Review San Francisco 40

Startup Professionals Musings

OCTOBER 29, 2010

A good answer might be “We have several patents on the base technology, which is so robust that we expect to roll out new products every year for the next ten years, always staying a step ahead of our competitors.” That implies competitive now, and the potential to stay in the lead. Our product is truly disruptive technology.”

Viral 223

Viral Lead Investor Advertising Revenue 223

This is going to be BIG.

FEBRUARY 27, 2011

In straightforward businesses like ecommerce, you’ve got a lot of logistics to manage to get a product in someone’s hand, not the least of which is inventory control, customer service, wholesale buying, and negotiating better shipping or credit card authorization fees. Scale brings complexity.

Dilution 104

Dilution Equity Hiring Partner 104

Gust

JULY 18, 2012

The recipient of the Gust-DEMO Scholarship will have a chance to launch their product to some of the most innovative people in the world. The Gust-DEMO scholarship gives you and your company the chance to launch in front of a world-renown audience of leading investors, top enterprise and consumer technology press, and big company strategists.

Silicon Valley 142

Silicon Valley Differentiation Lead Investor Distribution 142

OnlyOnce

JULY 26, 2018

Or you negotiate the highest possible valuation from a new lead investor, only to discover that new lead investor, now on your Board, expects you to triple it in four years and is way out of alignment with the rest of your cap table. On the other side, what’s an example of a “good” loss?

Cap Table 48

Cap Table Lead Investor Valuation Reputation 48

Growthink Blog

NOVEMBER 8, 2010

Since 2005, they have been the two leading investors in Africa, investing $31 billion and $16 billion on the continent, respectively. How easy / possible is it for global customers to buy your product – to purchase your service? • IPO by far this year will be the government ward General Motors. Your India strategy? •

Africa 104

Africa Brazil China India 104

Startup Professionals Musings

AUGUST 29, 2016

Just like professional investors wait for friends and family to go first, friends will wait for you to show “skin in the game.” A startup founder that is not the “lead investor” in time and money should not expect anyone else to jump in front and lead the way. Demonstrate your own financial commitment and progress.

Elevator Pitch 151

Elevator Pitch Exit Strategy Angel Investor Equity 151

Both Sides of the Table

MAY 13, 2018

I always tell founders … “An investors job is to deploy capital and make a return. If you truly believe that you, your company and your products are exceptional and your company will be valuable then you’re actually doing them a FAVOR by helping them invest in your startup. an investment in your company.

Term Sheet 332

Term Sheet Due Diligence Campaign Sales 332

www.paulgraham.com

OCTOBER 23, 2010

In the future, angel rounds will less often be for specific amountsor have a lead investor. forstartups was to find one angel to act as the lead investor. Youdnegotiate a round size and valuation with the lead, whod supplysome but not all of the money. Then the startup and the lead wouldcooperate to find the rest.

Startup 93

Startup Valuation Non-Compete Deal Flow 93