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VC Confessions: We Passed On Twilio’s Seed Round

InfoChachkie

For a high-volume seed fund that adds many portfolio companies every year (such as our friends at 500 Startups who invest in over 100 distinct companies annually), the cost of a bad affirmative decision (a false positive) is quite low, since it accounts for a relatively small portion of their total fund.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

We want money to make some acquisitions (investors would prefer to fund M&A if they know specific deals – not to encourage bad behavior. Many software companies have > 80% gross margins which is why they are more valuable than say traditional retailers or consumer product companies.

Startup 383
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It’s Morning in Venture Capital

Both Sides of the Table

Looking ahead at the next decade I am excited by what I believe will be viewed as one of the best and most rational investment periods for venture capital due to seven discrete factors: 1. If you want to understand the details of why this is, I covered it in detail in this post, Understanding Changes in the Software Industry.