Comments on: When seed funding is better than Series A http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/ News About Tech, Money and Innovation Mon, 23 Nov 2009 13:10:15 +0000 http://wordpress.org/?v=2.8.5 hourly 1 By: Jason http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/comment-page-1/#comment-815079 Jason Thu, 29 May 2008 08:20:20 +0000 http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/#comment-815079 Semi-oldie post, but goodie. I think you hit it right on the dot. I just received seed money for a new company by getting large buyers to write me letters that if I build, they will come. Semi-oldie post, but goodie. I think you hit it right on the dot. I just received seed money for a new company by getting large buyers to write me letters that if I build, they will come.

]]> By: Logoworks Small Business & Home Business Newsletter » Blog Archive » Introduction to Startup Funding http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/comment-page-1/#comment-801107 Logoworks Small Business & Home Business Newsletter » Blog Archive » Introduction to Startup Funding Tue, 01 Apr 2008 17:11:05 +0000 http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/#comment-801107 [...] Showalter does a good job of explaining why you don’t need big money from VCs to get [...] [...] Showalter does a good job of explaining why you don’t need big money from VCs to get [...]

]]> By: An Introductory Guide to Startup Funding « SLO Entrepreneur - In Video http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/comment-page-1/#comment-783232 An Introductory Guide to Startup Funding « SLO Entrepreneur - In Video Sun, 10 Feb 2008 04:32:56 +0000 http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/#comment-783232 [...] Showalter does a good job of explaining why you don’t need big money from VCs to get [...] [...] Showalter does a good job of explaining why you don’t need big money from VCs to get [...]

]]> By: François-Frédéric http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/comment-page-1/#comment-751494 François-Frédéric Thu, 24 Jan 2008 23:34:20 +0000 http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/#comment-751494 I have a prototype that solves a huge pain point for an industry. The team I am assembling already worked together. So I need captial to reduce the market risk, by doing many things including transforming the prototype into a demonstrator. I get a lot of traction, however assembling funding is still not straight forward. I could even say I am doomed because I cannot even fund the $30K expected by a guy I trust is proposing establishing the contacts with all potential sources of financing at the right time (seed, series A...). Too bad ugh... I have a prototype that solves a huge pain point for an industry. The team I am assembling already worked together. So I need captial to reduce the market risk, by doing many things including transforming the prototype into a demonstrator.

I get a lot of traction, however assembling funding is still not straight forward. I could even say I am doomed because I cannot even fund the $30K expected by a guy I trust is proposing establishing the contacts with all potential sources of financing at the right time (seed, series A…).

Too bad ugh…

]]> By: Andrew http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/comment-page-1/#comment-744942 Andrew Mon, 21 Jan 2008 04:17:39 +0000 http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/#comment-744942 Where is the seed? I know Charles River Ventures offers a "seed" program, but who else. Are there angel groups that have similar programs? And what format do they use, equity % or convertible debt? I am involved with www.startpath.org which is a social network and startup tool. We are working with a few folks in the Mid West to create a seed fund, which can hopefully bridge the large gap in this area. Where is the seed? I know Charles River Ventures offers a “seed” program, but who else. Are there angel groups that have similar programs? And what format do they use, equity % or convertible debt?

I am involved with http://www.startpath.org which is a social network and startup tool. We are working with a few folks in the Mid West to create a seed fund, which can hopefully bridge the large gap in this area.

]]> By: Miss Vinay Duggal http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/comment-page-1/#comment-624850 Miss Vinay Duggal Fri, 09 Nov 2007 23:33:08 +0000 http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/#comment-624850 Hello. I have 2 friends that have a start up webite/blog. I'm hoping to get them seedf unding in the order of $2-3Million for one year so they can expand and increase their traffic and advertisers. Any Advice? Hello. I have 2 friends that have a start up webite/blog. I’m hoping to get them seedf unding in the order of $2-3Million for one year so they can expand and increase their traffic and advertisers.
Any Advice?

]]> By: An Introductory Guide to Startup Funding : Instigator Blog http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/comment-page-1/#comment-582598 An Introductory Guide to Startup Funding : Instigator Blog Wed, 17 Oct 2007 14:03:57 +0000 http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/#comment-582598 [...] Showalter does a good job of explaining why you don’t need big money from VCs to get [...] [...] Showalter does a good job of explaining why you don’t need big money from VCs to get [...]

]]> By: jon kennedy http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/comment-page-1/#comment-581310 jon kennedy Tue, 16 Oct 2007 23:13:59 +0000 http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/#comment-581310 VCs are great copycats not only in the deal making, but also recycling other luminary entrepreneur material. I had chance to listen to Marc Andresson (ning founder)talking about these 3 or 4 big risks in the similar line in a video chat at techcrunch. If I show you great beta, with 1000 times bigger market potential than eye-fi would you talk to us ? How come all your investments are into one particular geographical area. VCs are great copycats not only in the deal making, but also recycling other luminary entrepreneur material.

I had chance to listen to Marc Andresson (ning founder)talking about these 3 or 4 big risks in the similar line in a video chat at techcrunch.

If I show you great beta, with 1000 times bigger market potential than eye-fi would you talk to us ? How come all your investments are into one particular geographical area.

]]> By: Seed Funding - Your Brand, LLC Forums http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/comment-page-1/#comment-581198 Seed Funding - Your Brand, LLC Forums Tue, 16 Oct 2007 22:42:30 +0000 http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/#comment-581198 [...] Funding If you are seeking funding for your startup idea, you must read When seed funding is better than Series A By Carl Showalter . I have seen companies survive when they could not raise early money by their determination, smart [...] [...] Funding If you are seeking funding for your startup idea, you must read When seed funding is better than Series A By Carl Showalter . I have seen companies survive when they could not raise early money by their determination, smart [...]

]]> By: SoftWave » Dizanje http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/comment-page-1/#comment-575402 SoftWave » Dizanje Fri, 12 Oct 2007 10:10:53 +0000 http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/#comment-575402 [...] trenutačnu situaciju na području investicija u startupe. Pa tako VentureBeat donosi analizu When seed funding is better than Series A (s kojim je zanimljivo usporediti godinu dana star Do you believe in angel investing?), dok [...] [...] trenutačnu situaciju na području investicija u startupe. Pa tako VentureBeat donosi analizu When seed funding is better than Series A (s kojim je zanimljivo usporediti godinu dana star Do you believe in angel investing?), dok [...]

]]> By: Anthony Kuhn http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/comment-page-1/#comment-574786 Anthony Kuhn Thu, 11 Oct 2007 23:08:53 +0000 http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/#comment-574786 Carl: Fresh faced entrepreneurs-in-the-making fresh from B school don't exactly have all the tools at hand when it comes to chosing between Series A and seed funding, whereas the VCs usually have seen it all before. Exciting for the startup, I imagine, but the path out of the funding briar patch is fraught with disinformation and "urban legends" like the 5 million dollar funding magic. Your piece might help them rest a bit easier when requesting a lesser, more sane, amount. I cross-posted on your piece to http://blog.innovators-network.org The Innovators Network is a non-profit dedicated to bringing technology to startups, small businesses, non-profits, venture capitalists and intellectual property experts. Please visit us and help grown our community! Best wishes for continued success, Anthony Kuhn Innovators Network Carl:

Fresh faced entrepreneurs-in-the-making fresh from B school don’t exactly have all the tools at hand when it comes to chosing between Series A and seed funding, whereas the VCs usually have seen it all before. Exciting for the startup, I imagine, but the path out of the funding briar patch is fraught with disinformation and “urban legends” like the 5 million dollar funding magic. Your piece might help them rest a bit easier when requesting a lesser, more sane, amount. I cross-posted on your piece to http://blog.innovators-network.org The Innovators Network is a non-profit dedicated to bringing technology to startups, small businesses, non-profits, venture capitalists and intellectual property experts. Please visit us and help grown our community!

Best wishes for continued success,

Anthony Kuhn
Innovators Network

]]> By: Don Jones http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/comment-page-1/#comment-574254 Don Jones Thu, 11 Oct 2007 17:45:24 +0000 http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/#comment-574254 Most entrepreneurs don't think in terms of milestones and inflection points, whereas venture capital funders do. Most entrepreneurs don’t think in terms of milestones and inflection points, whereas venture capital funders do.

]]> By: Mike Popovec http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/comment-page-1/#comment-574100 Mike Popovec Thu, 11 Oct 2007 16:23:41 +0000 http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/#comment-574100 It has been my personal experience that selling an idea to an investor(s) is much easier with a functioning prototype of the product or service you plan to bring to market. We have financed 99% of our concept to date with our own money. During that period, we couldn't get any traction from individual investors. Once we brought our site live, and even the most savvy investor can "touch and feel" what we are doing, it is a much easier sell to try and find that kind of money. My recommendation is to get a product or service out of beta (within reason) before you go for seven figure investments. Also, a tremendous resource for us has actually been looking for employees thru traditional job search engines (Monster.com, Craigslist). We have found several potential investor leads and business development people that we're way overqualified for the jobs we posted yet we're sincerely interested in our idea. That can take you much further with sales and bus dev than you could imagine. It has been my personal experience that selling an idea to an investor(s) is much easier with a functioning prototype of the product or service you plan to bring to market.
We have financed 99% of our concept to date with our own money. During that period, we couldn’t get any traction from individual investors. Once we brought our site live, and even the most savvy investor can “touch and feel” what we are doing, it is a much easier sell to try and find that kind of money.

My recommendation is to get a product or service out of beta (within reason) before you go for seven figure investments.

Also, a tremendous resource for us has actually been looking for employees thru traditional job search engines (Monster.com, Craigslist). We have found several potential investor leads and business development people that we’re way overqualified for the jobs we posted yet we’re sincerely interested in our idea. That can take you much further with sales and bus dev than you could imagine.

]]> By: Jeremy Horn http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/comment-page-1/#comment-573232 Jeremy Horn Thu, 11 Oct 2007 03:52:22 +0000 http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/#comment-573232 You bring up many good points. In my advising of start-up this issue comes up quite a bit; I have found, for a variety of reasons, ego being a big factor, founders want to jump straight into the VC and larger financing, often sooner that is prudent. I recently blogged on this topic, for anyone who is interested, at: http://tpgblog.com/2007/10/06/creating-your-product%e2%80%a6it-takes-money/ Enjoy. Jeremy Horn The Product Guy http://tpgblog.com You bring up many good points. In my advising of start-up this issue comes up quite a bit; I have found, for a variety of reasons, ego being a big factor, founders want to jump straight into the VC and larger financing, often sooner that is prudent. I recently blogged on this topic, for anyone who is interested, at: http://tpgblog.com/2007/10/06/creating-your-product%e2%80%a6it-takes-money/

Enjoy.

Jeremy Horn
The Product Guy
http://tpgblog.com

]]> By: Looking for funding? Read this. » ColoradoStartups.com http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/comment-page-1/#comment-572434 Looking for funding? Read this. » ColoradoStartups.com Wed, 10 Oct 2007 18:32:09 +0000 http://venturebeat.com/2007/10/09/when-seed-funding-is-better-than-series-a/#comment-572434 [...] a great post on VentureBeat today called When seed funding is better than Series A. If you’re a first-time entrepreneur looking to raise a first round of investment for your [...] [...] a great post on VentureBeat today called When seed funding is better than Series A. If you’re a first-time entrepreneur looking to raise a first round of investment for your [...]

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