Remove Dilution Remove Startup Remove Syndication
article thumbnail

Why LP’s Passed on Seed Funds 10 Years Ago (And What’s Happened Since)

View from Seed

What has happened is that over the last 10 years, the vast majority of successful startups have raised some sort of a seed round prior to a series A. And yes, a seed fund may have a tougher time holding on to their ownership down the road, and thus get diluted down. Both factors will hurt your ownership relative to fund size.

Dilution 399
article thumbnail

What Is Venture Debt and How Should Startups Use It?

View from Seed

There’s been a lot of digital ink spilled around the various types of capital available to startups today. As a startup grows, venture debt becomes a viable option to continue that growth. Glen is an active contributor to the local tech ecosystem and well-versed in how and when startups can use venture debt to their advantage.

Insiders

Sign Up for our Newsletter

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

article thumbnail

On Human Capital & Venture Capital

thebarefootvc

The best VCs are the ones that balance their optimism, vision and enthusiasm for startups with realism based on very real constraints (the primary one being his/her own time, but also includes market development and exit timing). As an entrepreneur at heart, I often innately grasp the potential of entrepreneurs and ideas that I meet with.

article thumbnail

Some Reflections on VC Investment Decisions

Both Sides of the Table

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. It’s hard enough being an investor in the roller-coaster life that is startups. I don’t.

Cofounder 374
article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Coinvestors: Flexible VC terms have not been standardized, which may make the investment harder to syndicate. Low; a surprising number of Series A/B startups are missing basic financial reporting mechanisms. of startups raise VC.

article thumbnail

A VC’s take on the Season 5 premier of Sharktank

Lightspeed Venture Partners

With his back to the wall and about to run out of money, his first priority should have been runway extension, not dilution from new capital. pre money valuation seems big, the actual implication is only between 5% and 10% dilution since the round size is small. But eventually two syndicates emerged.

article thumbnail

If You’re Not Sure Whether Your Current Investors Would Give You More Money, The Answer Is Likely “No”

Hunter Walker

Startup CEOs Should Test Strength of Cap Table Every ~6 Months To Know Where They Stand. I really liked Jason Lemkin’s “ Do You Have a Weak Investor Syndicate ” blog post from earlier in the summer. Go read it and then come back here…. Because it’s better for the company overall IMO. Long term greedy!!!!

Cap Table 127