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What amazes me is the seed round at 10s of millions. I was amazed to find the YC puts in 150k to each start up. I think it was 6k per founder back in the day.
by lifeisstillgood 4y ago
What amazes me is the seed round at 10s of millions. I was amazed to find the YC puts in 150k to each start up. I think it was 6k per founder back in the day.
Apart from companies wanting to build battery storage, what do people do with 20M of seed funding?
I mean surely it is time to pivot to finding dozens of companies wanting to just be profitable and return a dividend. Fund enough (but like YC) and one or two will become unicorns just because?
or am I dreaming
- Zaheer 4y ago"$10m-$15m post" actually refers to the valuation of the company rather than the investment amount. The investment amount is typically 10-20%. So a valuation of $10-15m would mean an investment of $1-1.5m
- stingraycharles 4y agoI say this as someone who isn’t very familiar with this world, but have also noticed this. I think it’s a perception hack: there are some expectations about how a series A startup operates (demonstrated product/market fit, starts entering the growth stage, etc), and investors/founders still want to invest in companies that show great potential according to them, but just aren’t there yet, and it’s undesirable to oversell the company / raise expectations too high. Hence the massive seed rounds, with equally massive bridge rounds, etc etc.