The Silliness Of Recapping Seed Rounds
JULY 14, 2015
A company raises $1m of seed money from angels in a convertible note with a $6m cap. Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. ” They are running out of money. The term sheet converts all the convertible debt into a post-money valuation of $100, essentially making the convertible debt worthless.
How the Seed-Stage VC Trend Began, The Downsides of Unicorns & Much More
Both Sides of the Table
MARCH 6, 2015
*. If you are a 20-something tech entrepreneur you could be forgiven for thinking that seed-stage investors, Angellist Syndicates and widely available angel money always existed. I was out to raise my first seed money in my second startup of $500,000.
Diversification – The Alternative to Market Timing
MARCH 10, 2012
I think that over time, this is the best way to handle market swings as a seed stage investor who is a) playing in a highly unpredictable part of the market and b) has a very long time horizon. We have a pretty strong sense of what realistic valuation ranges are and aren’t for seed stage companies. Our model works when our seed dollars go it at a price that allows us to be well compensated for the risk we took if things go reasonably well. Syndicate diversification.
Why the Series A Crunch Might Be a Good Thing
SEPTEMBER 27, 2013
In 2012, Rust and co-founder Garrett Johnson raised $2 million in seed funding in two weeks. Share of seed-funded companies that won''t be able to get follow-on funding: 61%Source: CB Insights That''s the story, anyway, and it has the start-up community vibrating with angst and debate.
Understanding the Risks of VC Signaling
Both Sides of the Table
APRIL 3, 2010
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.
Venture Seed vs Angel Seed « Immersive Web
JUNE 22, 2010
Immersive Web Home About Venture Seed vs Angel Seed I really enjoyed the Boston Angel Boot Camp on June 1. Among the many great discussions, the most critical one in my mind centered on the impact that the source of money can have on an early, seed startup. The discussion covered two main sources of seed funding: Vc and true angel. Isn’t seed money just seed money? Most seed investments, however, are just that — seeds.