asterisk2a + series   4

The frustrating, no-win "Goldilocks Zone" of seed deals
Don’t do party rounds. Raise as much as you possibly can so you don’t get crunched. Don’t raise money from just seed funds. Don’t raise money from just big name VCs unless you know you’ll breakthrough, and then absolutely do. And actually you never know that, so nevermind. Oh, and good luck rationalizing all of this advice, first timers. [...] TL;DR version: Large VC firms may do lots of seed deals but each partner will only do one to two Series A deals a year. So basic math tells you it’s a game of survivor. Most of the seed deals will not get a Series A from that firm. The concern is if you don’t quite make the cut, is the signal so bad to other VCs that you are worse off than if you never raised that, say, $200k from a big name VC to begin with? [ not every product consumer or b2b will not be a 500m/1bn dollar company, thus it's not worth it to raise risk capital and just grind it out!? at a sustainable pace, putting back in what you earned. ] &!
Seed  Round  Party  Round  Start-Up  lesson  Start-Up  advice  Angel  Investor  Micro  VC  Venture  Capital  Series  A  seedround  seedfunding  traction  business  model  Silicon  Valley  economies  of  scale  pageviews  Unicorn  valuation  speculative  bubbles  speculative  speculation 
july 2015 by asterisk2a
New stats show raising Seed money from big VCs increases survival. (The opposite of what everyone in the Valley says) | PandoDaily
(2) Don’t do a “party round” (2) Don’t raise money from a major VC. They will only follow on with the best companies and the signaling risk if they say no can be damning. [...] The companies who raised funds from large VC firms did better than those who raised funds from micro-VCs. [...] The anecdotal stuff is true & the data is true. The answer to how thats possible lies, as everything else in venture world does, with a massive range of quality & low barriers to get in. [...] the # of firms who invest at least $1 million a quarter 4 at least four straight quarters, there are only a paltry 97 firms left in the industry. [...] Raising big institutional funds is hard. Even shitty big VC firms have 2 meet some kind of bar 2 get that money — which is increasingly disappearing in the US. [...] [ hypothesis/thesis of micro-VC is flawed & opportunistic of lower Start-up cost 2 get from idea 2 MVP 2 Product/Market Fit with some traction. higher delta between good & bad co&mVC&angel ]
Start-Up  lesson  Start-Up  advice  Venture  Capital  Seed  Round  Angel  Investor  Party  Round  distortion  hunt  for  yield  economic  history  unintended  consequences  ZIRP  NIRP  QE  technological  history  technological  progress  Micro-VC  VC  Product/Market  Fit  post-traction  Series  A  MVP  meritocracy  meritocratic  Accelerator  ycombinator  Seed  Camp  TechStars  500  Start-ups 
april 2015 by asterisk2a
Author And YouTuber John Green Tells Advertisers To Stop Worrying About Eyeballs | TechCrunch
John Green talked about how he and his brother Hank built a devoted following of “nerdfighters” on YouTube, contributing to the enormous success of his book. In fact, they’ve built an online video business with 30 employees. But Green’s ad revenue is outweighed by things like crowdfunding and merchandise — and that ad revenue is falling by 5 percent every year. He acknowledged that’s not true for everyone on YouTube. Nonetheless, he argued, “Many of the strongest communities are dramatically undervalued by advertisers, forcing YouTubers to find other paths.” [...] And sure, distraction is fine, but Green doesn’t see himself and other “passionate YouTubers” as being in “the distraction business.” Instead, the best shows are in “the community business,” and he watches them because they help him “grapple with and consider the problems and questions way down deep there in the darkness. [...] focusing on eyeballs is a crummy way to measure the success and value [...] eyeball biz shrinking!
YouTube  content  creator  creator  digital  economy  digital  content  business  model  AdSense  Google  The  Wars  community  management  community  CrowdFunding  merchandise  Signal  vs.  Noise  distraction  Reality  TV  television  scripted-reality  TV  TV  Series  Clickbait  Linkbait  linkbaiting  pageviews  Page  Views  viral  coefficient  virality  Video  filter  bubble  content  curation  curation  Newsfeed  algorithm 
april 2015 by asterisk2a
What you label your funding round matters a lot less than how much you raise and what you accomplish | PandoDaily
It’s not inherently wrong to skip a Seed round altogether, or to raise a Seed so large that your next round effectively becomes a B round. But where the issue arises is in choosing such a path and not knowing you’re on it, and thus failing to deliver accordingly. Putting aside the occasional exceptions of outlier companies, proven repeat founders, and the like, there’s a predictable cadence to startup funding and the expectations that VCs set at each stage along the way. If you want to play the game, you have to know the rules.
Venture  Capital  Seed  Round  Series  A  Start-Up  lesson  Start-Up  advice  traction  growth 
april 2015 by asterisk2a

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