Both Sides of the Table

APRIL 27, 2014

I told my friend that I felt that in 2014 too many new VCs feel the pressure to chase deals, to be a part of syndicates with other brand names and to pounce on top of every startup whose numbers are trending up quickly. You have to decide where to lean in on follow-on rounds. They worry too much about missing out on a deal.

Cofounder 374

Cofounder Syndication Syndicate Early Stage 374

Rob Go

MAY 20, 2014

I find that it’s also pretty typical for an existing VC investor to be willing to syndicate the deal with another outside investor. In that case however, the founders might end up taking a lot of dilution. The existing investor will need to buy up to get to 20%+, and the new investor will want to buy 20%.

Valuation 76

Valuation Dilution Post-Money Valuation Syndication 76

View from Seed

JANUARY 28, 2016

This is the best time to fundraise because that’s when you are able to command a meaningfully higher valuation for your next round to minimize your own dilution. It creates focus and discipline and instills pressure to remain lean and not expand the team too quickly. This staged approach is often much better for the founders as well.

Cofounder 120

Cofounder Finance Founder Syndication 120

Rob Go

JANUARY 28, 2016

This is the best time to fundraise because that’s when you are able to command a meaningfully higher valuation for your next round to minimize your own dilution. It creates focus and discipline and instills pressure to remain lean and not expand the team too quickly. This staged approach is often much better for the founders as well.

Cofounder 28

Cofounder Finance Founder Syndication 28