Remove Finance Remove Seed Money Remove Syndication
article thumbnail

Seed Stage Funding 101: What it Is & How it Works

The Startup Magazine

I will tell you brief details about seed stage funding, and deal sourcing on this page, so read the conclusion until the end. What exactly is the seed funding? The initial official fundraising round is called seed funding, and it comes immediately after the pre-seed investment stage.

article thumbnail

Understanding a VC’s Seed Funding Policy is Critical

Both Sides of the Table

I think the issue was mostly framed initially by Chris Dixon in his article The Problem with Taking Seed Money from Big VC s. In these cases we proactively offer to lead their next round of financing. Like Brad Feld I’m syndication agnostic but I have a slight preference toward working with others.

article thumbnail

The Silliness Of Recapping Seed Rounds

Feld Thoughts

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. Here’s the scenario.