article thumbnail

Building the Best Seed Syndicates

View from Seed

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
article thumbnail

Should You Take Money from Investors Who Don't Share Your Values?

This is going to be BIG.

You don’t want to have to go into witness protection just because you couldn’t get your app to go viral.) (Morality aside, I’d say given the inherent riskiness of startups, I’m not sure this would be a great addition to your cap table. If prospective employees didn’t do this kind of research before, they almost certainly will now.

Cap Table 163
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Red Flags To Avoid When Talking About Competitors

Startup Professionals Musings

This is a variation on the first mover argument, implying a paradigm shift that gives you a tremendous lead. Investors will suspect you have a technology looking for a solution. This advantage is not sustainable. Our product is truly disruptive technology.” Only our team can make this work.” Our patent will protect us.”

Viral 226
article thumbnail

Angel Investing Skill 2 – Domain Knowledge

Both Sides of the Table

Lead investors and follow investors can both win equally but in each case you know why you personally are writing the check. They have real stories about what drives user engagement and viral adoption. I like to be early – usually first or near enough to it. Access to Deal Flow. Domain Knowledge.

article thumbnail

Real Sustainable Competitive Advantages are Rare

Startup Professionals Musings

This is a variation on the first mover argument, implying a paradigm shift that gives you a tremendous lead. Investors will suspect you have a technology looking for a solution. This advantage is not sustainable. Our product is truly disruptive technology.” Only our team can make this work.” Our patent will protect us.”

Viral 223
article thumbnail

Rolling Closes Versus Synchronous Closes

Haystack

Earlier this week, in the wake of Y Combinator’s Demo Day, I saw a tweet go viral and generate lots of chatter. His tweet reads: New weak investor move. The tweet was written by YC’s President, Michael Seibel. Most of the rounds I participate in today are priced equity rounds.

article thumbnail

Two investment deals are on the table. Which do you sign?

The Startup Toolkit

Vision for B2C, virality-driven community. Regarding structure, the first deal is a rolling round with committed lead investors. Highly experienced, top-tier angels. Vision for B2B, sales-driven technology. Requires team relocation. First-time VCs, building on their own entrepreneurial success. Conveniently local. Looks good.