Re:Convertible and SAFE notes
by svskeptic on Monday March 13, 2017 @12:14AM
(#13855195)
The VCs keep pushing the 'stage ask' further upstream every year. So, what used to be considered good for A round traction/revenue/MAU is now considered Seed and so on up.
They'll only want to invest when 'I know this is the winner in this category', but I'll call it Series A and Series A has always been done at valuation $x.
FU! You won't fund a deal till it's profitable and all the risk is taken off. But, I need to get money from somewhere! So, I'll get it from small angels and individuals. And since I have to collect it 25-50K at a time, I can't do a priced round.
You set this board up, now don't complain that you have to deal with the mess.
[Edit] And if you'll only be dealing with a startup once it has gotten some level of success, you have no option but to deal with the mess, if you want the deal.
They'll only want to invest when 'I know this is the winner in this category', but I'll call it Series A and Series A has always been done at valuation $x.
FU! You won't fund a deal till it's profitable and all the risk is taken off. But, I need to get money from somewhere! So, I'll get it from small angels and individuals. And since I have to collect it 25-50K at a time, I can't do a priced round.
You set this board up, now don't complain that you have to deal with the mess.
[Edit] And if you'll only be dealing with a startup once it has gotten some level of success, you have no option but to deal with the mess, if you want the deal.