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Based on that reaction, we wanted to continue improving the product through both additional revs/design and continuing to evolve how we think about board meetings in the first place. At NextView, one founder we invested in last year proactively asked us, as her lone institutionalinvestor, to start doing this.
In order to be competitive, a company needs to have just about everything in place, from its product to its team to market traction, before it is ready to seek funding. Your private profile is where investors will look with a critical eye on everything that makes you a business rather than just a product or a sexy idea.
In the last year or so, the debate over the definitions of seed versus pre-seedcapital (sometimes called genesis rounds) has exploded. Much digital ink has been spilled about what dollar amount constitutes a pre-seed and how that might affect a startup’s ability to go raise a “normal” seed round from institutionalinvestors.
Stage #2: Seed Funding Seed funding (also called seedcapital) typically ranges from $100,000 to $500,000 and is often provided by angel investors, and is usually structured as convertible notes or common stock. With seed funding, you hope to grow your business and, at the very least, gain proof of concept.
I predict that most large, lifecycle funds will scale back their seed stage promiscuity because they’ve realized that it’s just not a great product for founders. Instead, we’ll see most large funds doing a small handful of seeds only when there is very high conviction.
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