3 ms·

It’s not that seed investors are smarter – it’s that entrepreneurs are

85 points by rpledge 16y ago

dpritchett 16y ago
I was 2/3 through this before I realized that the point of the post is that the author's new venture is a better deal for founders than the traditional VC firm. I spent most of the post thinking along the lines of "former founder offers free advice to other founders".
- jey 16y ago
  Sure, cdixon has his biases and own interests like any author, but he's generally pretty insightful. As readers it's up to us to think critically about what we're reading and figure out whether or not it actually makes sense. It's good to be aware of his potential conflicts of interest, but they don't automatically make him right or wrong. That said, I do wish he would justify the "amount raised" and "pre-money valuation" line items under the "Seed+VC" hypothetical scenario column.
- ivankirigin 16y ago
  I really like Chris's blog. You didn't really point to a flaw in the core argument. It is normal to pursue ventures that you think are both good and leveraged.
harscoat 16y ago
Some of CDixon arguments: For non cash intensive startups going after VC it's a distraction especially if they are not Top Tier VCs: * VCs are extractors not builders * they are on the board and are going to give their "opinions" and often they never were tech founders themselves * best advice comes from having gone through the same thing as the founders: building a company vs sitting in (board) meetings * if you raised with a VC at seed level and that VC does not follow up, you are dead (negative signaling) * VCs want to "put a lot of money at work" to justify their work. The bigger their fund the more they have to justify their management fees and the less company they fund the easier the job even if risky. * it is their job not a hobby: pressure to succeed or pretend. More at stake than for Angels or angels agregate in seedfunds. Angels most of the time already made their money and built their reputation. They consider more it play money and more ready to lose it. * It takes more time to raise with them than with angels or seed funds * VCs by default take prefered stocks vs common for founders & employees and can add many death pill clauses, vs more standard (even open source) less agressive legal documents in the case of seed funds, angels.
amix 16y ago
I love this kind of transparency. Making it much easier to be a founder :)
didtrade 16y ago
<a href="http://www.didtrade.com/ http://www.didtrade.com/ target="_blank"> www.didtrade.com </a> Online sell fashion goods,Accept PayPal.cheap replica fashion goods for sale from china free shipping <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Handbags&SmallClassName=wholesale coach" target="_blank">Coach Handbag</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Handbags&SmallClassName=Replica Chanel" target="_blank">Chanel Handbag</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Handbags&SmallClassName=Replica LV" target="_blank">Louis Vitton Handbag</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Handbags&SmallClassName=Replica Juicy" target="_blank">Juicy Handbag</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Handbags&SmallClassName=Replica Burberry" target="_blank">Burberry Handbag</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Handbags&SmallClassName=Replica Gucci" target="_blank">Gucci Handbag</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Handbags&SmallClassName=Replica Prada" target="_blank">Prada Handbag</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Handbags&SmallClassName=Replica DG Handbag" target="_blank">D&G Handbag</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Handbags&SmallClassName=Jimmy Choo Handbag" target="_blank">Jimmy Choo Handbag</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica T-shirt&SmallClassName=Polo(men)" target="_blank">Polo T-shirt</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica T-shirt&SmallClassName=AF(men)" target="_blank">A&F T-shirt</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Suit&SmallClassName=Fashion Suit" target="_blank">Fashion Suit</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Jeans&SmallClassName=TrueReligion(men)" target="_blank">TrueReligion Jean</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Jeans&SmallClassName=ED Hardy(men)" target="_blank">ED Hardy Jean</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Belt&SmallClassName=Replica Belt" target="_blank">Leather belt</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Jewelry&SmallClassName=Chanel Jewelry" target="_blank">Replica Jewelry</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Fashion http://www.didtrade.com/Product.asp?BigClassName=Fashion Shoes&SmallClassName=Brand Gucci Shoe" target="_blank">Casual shoes</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Sunglass&SmallClassName=Oakley Sunglass" target="_blank">Sun glasses</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Wallets&SmallClassName=LV" target="_blank">Replica Wallet</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Perfume&SmallClassName=Brand Replica Perfume" target="_blank">Brand Perfume</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Hats&SmallClassName=Wholesale Hat" target="_blank">Nice Hat</a>

85 points by rpledge 16y ago

I was 2/3 through this before I realized that the point of the post is that the author's new venture is a better deal for founders than the traditional VC firm. I spent most of the post thinking along the lines of "former founder offers free advice to other founders".

jey 16y ago
Sure, cdixon has his biases and own interests like any author, but he's generally pretty insightful. As readers it's up to us to think critically about what we're reading and figure out whether or not it actually makes sense. It's good to be aware of his potential conflicts of interest, but they don't automatically make him right or wrong. That said, I do wish he would justify the "amount raised" and "pre-money valuation" line items under the "Seed+VC" hypothetical scenario column.
ivankirigin 16y ago
I really like Chris's blog. You didn't really point to a flaw in the core argument. It is normal to pursue ventures that you think are both good and leveraged.

harscoat 16y ago

Some of CDixon arguments: For non cash intensive startups going after VC it's a distraction especially if they are not Top Tier VCs: * VCs are extractors not builders * they are on the board and are going to give their "opinions" and often they never were tech founders themselves * best advice comes from having gone through the same thing as the founders: building a company vs sitting in (board) meetings * if you raised with a VC at seed level and that VC does not follow up, you are dead (negative signaling) * VCs want to "put a lot of money at work" to justify their work. The bigger their fund the more they have to justify their management fees and the less company they fund the easier the job even if risky. * it is their job not a hobby: pressure to succeed or pretend. More at stake than for Angels or angels agregate in seedfunds. Angels most of the time already made their money and built their reputation. They consider more it play money and more ready to lose it. * It takes more time to raise with them than with angels or seed funds * VCs by default take prefered stocks vs common for founders & employees and can add many death pill clauses, vs more standard (even open source) less agressive legal documents in the case of seed funds, angels.

amix 16y ago

I love this kind of transparency. Making it much easier to be a founder :)

didtrade 16y ago

<a href="http://www.didtrade.com/ http://www.didtrade.com/ target="_blank"> www.didtrade.com </a> Online sell fashion goods,Accept PayPal.cheap replica fashion goods for sale from china free shipping <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Handbags&SmallClassName=wholesale coach" target="_blank">Coach Handbag</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Handbags&SmallClassName=Replica Chanel" target="_blank">Chanel Handbag</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Handbags&SmallClassName=Replica LV" target="_blank">Louis Vitton Handbag</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Handbags&SmallClassName=Replica Juicy" target="_blank">Juicy Handbag</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Handbags&SmallClassName=Replica Burberry" target="_blank">Burberry Handbag</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Handbags&SmallClassName=Replica Gucci" target="_blank">Gucci Handbag</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Handbags&SmallClassName=Replica Prada" target="_blank">Prada Handbag</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Handbags&SmallClassName=Replica DG Handbag" target="_blank">D&G Handbag</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Handbags&SmallClassName=Jimmy Choo Handbag" target="_blank">Jimmy Choo Handbag</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica T-shirt&SmallClassName=Polo(men)" target="_blank">Polo T-shirt</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica T-shirt&SmallClassName=AF(men)" target="_blank">A&F T-shirt</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Suit&SmallClassName=Fashion Suit" target="_blank">Fashion Suit</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Jeans&SmallClassName=TrueReligion(men)" target="_blank">TrueReligion Jean</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Jeans&SmallClassName=ED Hardy(men)" target="_blank">ED Hardy Jean</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Belt&SmallClassName=Replica Belt" target="_blank">Leather belt</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Jewelry&SmallClassName=Chanel Jewelry" target="_blank">Replica Jewelry</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Fashion http://www.didtrade.com/Product.asp?BigClassName=Fashion Shoes&SmallClassName=Brand Gucci Shoe" target="_blank">Casual shoes</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Sunglass&SmallClassName=Oakley Sunglass" target="_blank">Sun glasses</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Wallets&SmallClassName=LV" target="_blank">Replica Wallet</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Perfume&SmallClassName=Brand Replica Perfume" target="_blank">Brand Perfume</a> <a href="http://www.didtrade.com/Product.asp?BigClassName=Replica http://www.didtrade.com/Product.asp?BigClassName=Replica Hats&SmallClassName=Wholesale Hat" target="_blank">Nice Hat</a>