Remove Angel Remove Competition Remove Seed Funding Remove Writing
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What Does the Post Crash VC Market Look Like?

Both Sides of the Table

Across more than 10 years we have kept the size of our Seed investments between $2–3.5 million, our Seed Funds mostly between $200–300 million and have delivered median ownerships of ~20% from the first check we write into a startup. By 2021 we had to write a $3.5m How Does the Industry Really Work?

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The Changing Venture Landscape

Both Sides of the Table

I’m over-paying for every check I write into the VC ecosystem and valuations are being pushed up to absurd levels and many of these valuations and companies won’t hold in the long term. Because to invest at a $60–80 million pre-money valuation (or even $40–50 million) before there is enough evidence of success requires a larger fund.

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The Authoritative Guide to Prorata Rights

Both Sides of the Table

These tensions seep out in some angels or seed funds publicly or semi-privately deriding later-stage VCs for their “bad” behavior. Or your A-round investor who wrote a $5 million for 25% of your company may not be well positioned to write another $5 million (25%) of a $20 million round.

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This Week in VC with Rick Smith of Crosscut Ventures

Both Sides of the Table

Heck, stick around and watch me discuss the seed funding debate that is going on right now and what is happening in the VC industry overall. I give a sneak peek at a blog post I’m writing on the topic next week. Can you please explain convertible debt and specifically how it pertains to angel deals?

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The Changing Structure of the VC Industry

Both Sides of the Table

The VC market has right-sized (returned back to mid 90′s levels & less competition). Lower costs to start a business (95% reduction), many more companies created & funded by angels / seed. Just 3 years ago there was talk of institutional investors “not being able to write small enough checks.”

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Is @AngelList Syndicates Really Such a Big Deal?

Both Sides of the Table

My favorite new VC blogger, Hunter Walk, weighed in with some thoughtful comments about how Syndicates might actually pit, “ angel vs. angel.” ” And even the venerable Fred Wilson weighed in with how people “ leading vs. following ” in funding rounds play different roles and have different skills.

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What Entrepreneurs Should do about Price Fixing

Both Sides of the Table

But the majority of VCs & Angels all speak. Have you looked at competition? How well financed is the competition? My advice: Do not mention the other VC firms, angels, seed funds, etc. It’s called competition. It’s healthy competition. Entrepreneurs need angels.

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