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Songkick (YC S07) raises $4m series A
- jamescoops 18y agothey are good citizens too - running hacker events from their office
- axod 18y agoAgreed. The one I attended back in April was a great experience and really useful. Congrats on the funding :D
- fallentimes 18y agoWow - congrats guys. And great press following that knock off site covered on TC.
- wheels 18y agoIs there actually a technical distinction between a Series A and a seed round? (I've always assumed it was just size and order of progression.) Their last funding was already $1 million, so wouldn't this be more like a small Series B?
- breck 18y agogood question. anyone?
- mattmaroon 18y agoIt's arbitrary. A lot of people call the first small equity round a Series AA. My guess is that their first round was either a convertible or a Series AA that was mislabeled as a Series A in Crunchbase. Or this one was a Series B that was mislabed a Series A. Either way, it doesn't really mean much. And "seed round" is more of a general term. Your Series A could be your seed round. It doesn't have any specific meaning, though in their case I'd assume they would consider the YC funds the seed round.
- uuilly 18y agoA series A means that you're issuing class A stock. An angel round means your issuing a note that will eventually convert to class A stock, aka a convertible note. The threshold between an angel round and a series A is determined by your articles of incorporation. It's usually between 2 and 5 million. Before your series A you have no valuation b/c it would be a waste of money to determine it. Once you have matured and you raise enough money to go past the 2 to 5 million "convertible threshold," you get a valuation and issue class A stock to your investors and angels. Your angels convert from a convertible note to class A stock at the pre-money valuation and they get to ride the "valuation bump" the series A investors put in for free. Ok, I reread this explanation and I hated it. This is how I actually understand it: // globals double classAThreashold = callLaywers( "Halp!" ); double outstandingShares = callLawyers( "Oh noes!" ); double amountInvested = 0; void enterNewInvestment( double newInvestment ) { if( newInvestment + amountInvested >= classAThreshold ) { double preMoneyValuation = getValuation(); vector< double > percentagePerInvestor; for( int i = 0; i < angelInvestments.size(); ++i ) { // convertible notes convert here: percentagePerInvestor.push_back( angelInvestments[ i ] / preMoneyValuation ); } percentagePerInvestor.push_back( newInvestment / preMoneyValuation ); for( int i = 0; i < percentagePerInvestor.size(); ++i ) { cout << "Shares for investor # " << i << " " << percentagePerInvestor[ i ] * outstandingShares; } cout << "the company is now worth :" << preMoneyValuation + newInvestment; } else { angelInvestments.push_back( newInvestment ); } amountInvested += newInvestment; } This is how I understand the whole process. It took my lawyers a long time to explain it all to me and I'm probably still screwing something up. Go easy on C++ :) [updated a few bug fixes]
- mattmaroon 18y agoOur articles of incorporation did not specify what future rounds would be called based on amounts raised at all. I don't think most do. And to my knowledge, there is no law requiring that. I'm pretty sure you can call your first round a Series C if you want to, though it would probably not be a good idea. My point was that it's a custom, not a law, and the distinction between an AA and an A is arbitrary.
- fallentimes 18y agoAFAIK seed rounds are usually $1 million or less. Venture hacks is a great source, but I unfortunately couldn't find an exact answer to your question: http://venturehacks.com/ http://venturehacks.com/
- konsl 18y agoAccording to Nivi, anything above $500K is Series A country: http://venturehacks.com/articles/seed-valuation http://venturehacks.com/articles/seed-valuation
- ian 18y agoOne way in which this can occur is if you raise a seed round in convertible debt which converts into preferred stock at a following Series A.
- DaniFong 18y agoCongratulations are due for a company that helped tip me off to two rocking nights!
- ian 18y agoGlad to hear it!
- adamsmith 18y agoCongrats guys!
- RichardPrice 18y agoThe Songkick team is awesome. Many congratulations.
- ian 18y agoThanks very much guys for the kind words