View from Seed

MARCH 15, 2017

VC evaluation of seed-stage startups can seem arbitrary or imitative at times. Internally, the scarcity of tangible business metrics – product usage or revenue multiples for example – can make an investment decision feel daunting. Any seed stage company’s strategy is a constant work-in-progress.

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Due Diligence Seed Stage Portfolio Metrics 265

View from Seed

OCTOBER 28, 2019

To some degree the best way to describe a pre-seed round is that you know it when you see it, as the definition is squishy… but most pre-seed rounds are characterized as relatively small ($750K or less), early in company formation (pre-product), and typically followed by a larger “seed” round ($1M-$3M) within 12 months.

Seed Stage 247

Seed Stage Finance Dilution Early Stage 247

David Teten

JANUARY 19, 2021

This structure allows for alignment on the front end, and real-time flexibility for performance metrics,” says Samira Salman , a family office investor and advisor. . Flexible VCs have created structures based on other company performance metrics than revenues, such as profits or founder salaries. Flexible VC 102: Variations.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

View from Seed

NOVEMBER 18, 2014

Once a startup has raised seed capital, plenty of theories and advice exist on how to successfully raise a Series A. Recently, we looked at our own portfolio at NextView Ventures to dig a little deeper on how startups actually raise that next round of financing. Generate Real Revenue. Are you building on hype and promise?

Syndicate 333

Syndicate Syndication Seed Stage Startup 333

Genuine VC

MAY 29, 2014

It’s been five years now since large VC ‘signaling’ entered the seed stage entrepreneur’s lexicon. It seems as though it’s been talked about ad nauseum in the blogosphere, but we see first-hand as entrepreneurs we’re investing in at NextView Ventures work through building their seed round syndicates, it really is a tough issue.

Syndicate 166

Syndicate Syndication Seed Stage Valuation 166

View from Seed

JUNE 10, 2020

When the culmination of an accelerator is a Demo Day show, then that is what teams prepare for and the resulting metrics by which they’re measured. Some prospective seed stage VCs may consider the remaining startups “passed over” and of lesser quality, when in reality great startups take time to mature and blossom. .

Cofounder 177

Cofounder Syndicate Syndication Alabama 177

K9 Ventures

JUNE 5, 2015

Almost two years ago, in a private/closed meeting with K9 Ventures’ LPs only, I claimed that: What was being referred to in the press as the “Series A Crunch” was not because fewer Series A deals were being done, but because there were too many Seed deals being done. Seed stage was super tough. Pre-Seed is the New Seed.

Seed Stage 48

Seed Stage Venture Capital Early Stage Valuation 48

View from Seed

SEPTEMBER 25, 2019

*This post is part of our “pitch deck” series where we dissect the seed stage pitch deck and discuss the ideal flow for a pitch. Investors want to know the critical thinking behind the inputs and value-drivers of the business, and how that results in the outputs on the critical metrics and finances.

Seed Stage 166

Seed Stage Retention Restful Valuation 166

K9 Ventures

OCTOBER 10, 2017

This post is intended to be a dynamic document, and I will attempt to update it from time to time with new questions that may arise or as financing trends evolve. And I sincerely hope that this post does a good job of addressing what Pre-Seed really is. Q: Define Pre-Seed? Q: What amount of financing is considered Pre-Seed?

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

The Next Web

FEBRUARY 27, 2014

This is typically in conjunction with an upcoming financing or pending takeover offer. A competitive commodity business, or a “me too” story , will be less demanded, and hence, will require a lower valuation to close your financing. Freshman are a piece of paper to beta site (bootstrap financed—raise $50K to $500K).

Valuation 167

Valuation Forecast Seed Stage .Net 167

K9 Ventures

APRIL 9, 2014

Instead, it was more of a result of over-funding at the seed stage. There was simply too much money coming in to the seed stage, which increased the supply of companies at the seed stage. The deal stage and sizes have changed dramatically. Seed is not the first round of financing any more.

Mezzanine 134

Mezzanine Seed Stage Early Stage IPO 134

View from Seed

JUNE 16, 2015

And that product is a highly engaged seed-stage investment where we are usually the lead or co-lead in a round and will often take a board seat. Here are some top-line metrics that I think are worth shooting for: For marketplace businesses: $5M-$10M in annual GMV run rate. For SaaS: At least $100K in MRR.

Boston 120

Boston Syndicate Syndication eCommerce 120

Austin Startup

MAY 19, 2018

The bottom line is that being a seed stage founder is mostly a very thankless job. Don’t boomerang founders If you have specific metrics you look for in early stage companies. Many VCs have backgrounds in finance. There is no such thing as “not right now” there is just “yes” and “no”. That’s awesome.

Founder 75

Founder Early Stage Software Review Deal Flow 75

View from Seed

JUNE 30, 2015

A few weeks ago, Manu Kumar wrote an excellent post detailing the current state of the seed financing landscape. One very common meme these days is that “seed is the new A.” For all of these, the metrics and growth need to be the result of legitimate PMF and execution, not tricks. (If

Seed Stage 120

Seed Stage Syndicate Syndication Dilution 120

K9 Ventures

OCTOBER 12, 2015

Not to mention that in later stages, high valuations can almost be fatal for some companies that don’t have the operating metrics to justify those valuations once the market turns. This means more noise in the system for seed stage investors. More companies get funded at the early stages.

Venture Capital 48

Venture Capital Seed Stage LP Valuation 48

Both Sides of the Table

SEPTEMBER 27, 2010

Now we can call you a seed-stage VC or a micro VC. What micro VCs need to consider is what happens when several of your companies want to grow and require VC financing? Or when the economy turns downward and they all need financing extensions? If you invest it in startups you’re a VC professional money manager.

Silicon Valley 308

Silicon Valley Liquidity Event Seed Stage Finance 308

Hunter Walker

DECEMBER 19, 2013

However, measuring the outcome of a fund has a long time horizon so there are several other metrics we keep on our dashboard. We were offered a substantial second slot but passed because it wouldn’t have achieved our ownership targets or desire to lean in via a board seat [note: why we think Boards at seed stage are important.

Cofounder 108

Cofounder Term Sheet Seed Stage Portfolio 108

Gust

NOVEMBER 4, 2011

Entrepreneurs and investors who have spent any time dealing with convertible debt seed financing transactions are likely to have encountered the subject of valuation caps. The cap is irrelevant if the next equity financing is at a valuation below the cap amount.) was spun out, and the valuation was set by that financing round.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

ithacaVC

APRIL 5, 2011

Additionally, at the seed stage, investors and the company might want to issue the investors convertible debt to avoid the question of valuation. The company is at the pre-seed stage, and the outside investment would qualify the company for an additional grant from a government source (matching funds).

Common Stock 45

Common Stock Stock Cap Table Preferred Stock 45

Steve Blank

FEBRUARY 26, 2020

What most founders don’t realize is: Every stage of a startup requires a different set of metrics and milestones and founder skills. Step 2: The Seed round – you raise $1-$3M (in some cases even $2-5M). Btw, the definition of each startup financing stage has changed in the last decade. Seed Round of Funding.

Cofounder 433

Cofounder Seed Stage Valuation Metrics 433

Women Entrepreneurs Can

MAY 9, 2019

These folks are accessible across any industry and are particularly useful for entrepreneurs who have moved beyond the seed stage of financing, but don’t yet have the significant revenue needed to court venture capital funding. Solid Organizational Processes.

Programming 40

Programming Sweat Equity Startup Private Equity 40

Both Sides of the Table

MARCH 6, 2011

I still think it’s best to take money from Dave when you’re also partnered with a more focused, hands-on seed-stage VC who brings different things to the table – like more ability to write larger checks in a downturn (for one) or solving a deep crisis that involves super hands-on involvement.

Valuation 292

Valuation Deal Flow Lead Investor Cofounder 292

Hunter Walker

MAY 1, 2016

Anneke Jong: I’ve talked to and advised many seed stage startups, and I find they often have an awesome high-level pitch, but if you start asking questions just one layer deeper, most of the answers are, “Errrr, um….we Hunter Walk: You left a gig at Google to join Reserve. It’s hard for startups to recruit from Google!

New York City 48

New York City New York Los Angeles Startup 48

Hunter Walker

MAY 1, 2016

Anneke Jong: I’ve talked to and advised many seed stage startups, and I find they often have an awesome high-level pitch, but if you start asking questions just one layer deeper, most of the answers are, “Errrr, um….we Hunter Walk: You left a gig at Google to join Reserve. It’s hard for startups to recruit from Google!

New York City 48

New York City New York Los Angeles Startup 48

This is going to be BIG.

JUNE 2, 2010

And yes, this post may seem self-serving, since I work at a seed-stage investment fund. That doesn’t seem like a good reason to change your financing and product strategy over. Drive one key metric. Feel free to take this free content with a grain of salt. Once you have that, keep your focus simple. Is it users?

Cap Table 106

Cap Table Seed Stage .Net Venture Capital 106

Rob Go

FEBRUARY 5, 2012

Usually financial metrics are pretty sparse at early stages and investors have a hard time giving companies “credit” for steady, linear progress. For seed stage companies, typically, it’s about: Compelling founder(s). We’ve seen high-flying financings on companies that just have traction.

Business Model 65

Business Model Seed Stage Valuation Vertical 65

www.vccafe.com

MARCH 11, 2013

Startup Metrics for Pirates â?? SaaS Metrics Tutorial â?? easy business finance software. YCombinator Series AA Equity Financing Documents. Series Seed Documents â?? Fenwick & West Seed Investment Standard Forms, used by most angels. Seed Stage Valuation Guide. Startup Threads. SlideShare.

Software Review 53

Software Review Technical Review Israel Startup 53

steveblank.com

JULY 8, 2011

Managewith.us - Collaborative Task Manager Mavenlink - manage project communications, documents, schedules, budgets, payments Industrial Logic – Agile eLearning Misc Office Help Google Apps – cloud mail server, calendar, docs, etc.

Software Review 110

Software Review Startup Silicon Valley Analytics 110