Comments on: The most important question to ask before taking seed money http://cdixon.org/2009/10/30/the-most-important-question-to-ask-before-taking-seed-money/ Fri, 12 Mar 2010 21:51:32 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: links for 2010-01-28 « Blarney Fellow http://cdixon.org/2009/10/30/the-most-important-question-to-ask-before-taking-seed-money/comment-page-2/#comment-6280 links for 2010-01-28 « Blarney Fellow Fri, 29 Jan 2010 01:32:55 +0000 http://www.cdixon.org/?p=1746#comment-6280 [...] The most important question to ask before taking seed money cdixon.org – chris dixon's blog (tags: brezmejnik startup vc) [...] [...] The most important question to ask before taking seed money cdixon.org – chris dixon's blog (tags: brezmejnik startup vc) [...]

]]> By: Mark Essel http://cdixon.org/2009/10/30/the-most-important-question-to-ask-before-taking-seed-money/comment-page-2/#comment-5714 Mark Essel Sun, 29 Nov 2009 23:44:54 +0000 http://www.cdixon.org/?p=1746#comment-5714 First popular post read, I mark it 7/10 Chris. An absolute must read if your concept needs funding from the start. And generally good advice for startups that pursue funding later.<br><br>Many startups aren't even looking for funding. It's much better to focus on business and revenue building, and seeking out outside money only when absolutely necessary. <br><br>How about splitting your startup to two external seed investors? Is that only applicable in selling one's<br>soul ;) First popular post read, I mark it 7/10 Chris. An absolute must read if your concept needs funding from the start. And generally good advice for startups that pursue funding later.

Many startups aren't even looking for funding. It's much better to focus on business and revenue building, and seeking out outside money only when absolutely necessary.

How about splitting your startup to two external seed investors? Is that only applicable in selling one's
soul ;)

]]> By: Mark Essel http://cdixon.org/2009/10/30/the-most-important-question-to-ask-before-taking-seed-money/comment-page-2/#comment-4874 Mark Essel Sun, 29 Nov 2009 15:44:54 +0000 http://www.cdixon.org/?p=1746#comment-4874 First popular post read, I mark it 7/10 Chris. An absolute must read if your concept needs funding from the start. And generally good advice for startups that pursue funding later.<br><br>Many startups aren't even looking for funding. It's much better to focus on business and revenue building, and seeking out outside money only when absolutely necessary. <br><br>How about splitting your startup to two external seed investors? Is that only applicable in selling one's<br>soul ;) First popular post read, I mark it 7/10 Chris. An absolute must read if your concept needs funding from the start. And generally good advice for startups that pursue funding later.

Many startups aren't even looking for funding. It's much better to focus on business and revenue building, and seeking out outside money only when absolutely necessary.

How about splitting your startup to two external seed investors? Is that only applicable in selling one's
soul ;)

]]> By: Weekend Reading #3 http://cdixon.org/2009/10/30/the-most-important-question-to-ask-before-taking-seed-money/comment-page-1/#comment-4857 Weekend Reading #3 Mon, 23 Nov 2009 00:52:13 +0000 http://www.cdixon.org/?p=1746#comment-4857 [...] The most important question to ask before taking seed money [...] [...] The most important question to ask before taking seed money [...]

]]> By: empresario1 http://cdixon.org/2009/10/30/the-most-important-question-to-ask-before-taking-seed-money/comment-page-1/#comment-4804 empresario1 Sun, 15 Nov 2009 00:34:23 +0000 http://www.cdixon.org/?p=1746#comment-4804 Good post...I came across your post by looking for commentary/insight on whether or not it makes sense to take money from a "seed fund" that is really part of a larger VC. Our situation is slightly unique in that we have commitments from friends, family and angels to account for just over half of what we are trying to raise. The "seed fund" wants the rest of it, but wants an option to invest at a discount in the subsequent round. Initially, we thought it made a bunch of sense to be associated with this "brand name" VC, but the more we think about it and see commentary like your post, we are thinking we don't take their money? Any advice would be appreciated... Good post…I came across your post by looking for commentary/insight on whether or not it makes sense to take money from a “seed fund” that is really part of a larger VC. Our situation is slightly unique in that we have commitments from friends, family and angels to account for just over half of what we are trying to raise. The “seed fund” wants the rest of it, but wants an option to invest at a discount in the subsequent round. Initially, we thought it made a bunch of sense to be associated with this “brand name” VC, but the more we think about it and see commentary like your post, we are thinking we don't take their money? Any advice would be appreciated…

]]> By: ShanaC http://cdixon.org/2009/10/30/the-most-important-question-to-ask-before-taking-seed-money/comment-page-1/#comment-4737 ShanaC Tue, 10 Nov 2009 22:57:06 +0000 http://www.cdixon.org/?p=1746#comment-4737 There are certain business that fall in between. Those scare me the most... There are certain business that fall in between. Those scare me the most…

]]> By: Tweets that mention The most important question to ask before taking seed money cdixon.org – chris dixon's blog -- Topsy.com http://cdixon.org/2009/10/30/the-most-important-question-to-ask-before-taking-seed-money/comment-page-1/#comment-4664 Tweets that mention The most important question to ask before taking seed money cdixon.org – chris dixon's blog -- Topsy.com Mon, 09 Nov 2009 18:45:58 +0000 http://www.cdixon.org/?p=1746#comment-4664 [...] This post was mentioned on Twitter by Jonathan Pasky, David Roth. David Roth said: RT @jonathanpasky The most important question to ask before taking seed money as a startup: http://bit.ly/2UTMHQ [...] [...] This post was mentioned on Twitter by Jonathan Pasky, David Roth. David Roth said: RT @jonathanpasky The most important question to ask before taking seed money as a startup: http://bit.ly/2UTMHQ [...]

]]> By: Raising capital - The 50 or so things you should read first | JonBischke.com http://cdixon.org/2009/10/30/the-most-important-question-to-ask-before-taking-seed-money/comment-page-1/#comment-4607 Raising capital - The 50 or so things you should read first | JonBischke.com Sun, 08 Nov 2009 18:04:41 +0000 http://www.cdixon.org/?p=1746#comment-4607 [...] The most important question to ask before taking seed money Don’t shop your term sheet [...] [...] The most important question to ask before taking seed money Don’t shop your term sheet [...]

]]> By: john_vrionis http://cdixon.org/2009/10/30/the-most-important-question-to-ask-before-taking-seed-money/comment-page-1/#comment-4584 john_vrionis Thu, 05 Nov 2009 23:10:35 +0000 http://www.cdixon.org/?p=1746#comment-4584 Hi Chris - this is John Vrionis from Lightspeed. I think this is a great discussion topic, thanks for posting. I appreciate your views and frankly agree with a number of the posts. There is certainly risk in seed funding from a VC and a possible stigma if that VC doesn’t want to continue investing in the next round. For the purposes of this thread I want to briefly explain our motivation behind our summer program. I look at it this way, at Lightspeed we’re in the business of fostering entrepreneurship. I started the program in 2006 because we had the resources and desire to provide students the platform they need to dedicate 100% of their time during the summer to their startup ideas. As a grad student, I (like most of my entrepreneurial classmates!) had to take jobs to pay the bills and therefore startup time was left to nights and weekends. When I joined Lightspeed and saw there was willingness to offer something better, we decided to give it a try.<br><br>We don’t ask for equity or a right to invest. We never intended it be an incubator or a seed program. We honestly feel it is a privilege to work with such bright, energetic people at this stage in their careers and enjoy building the relationship. Of course if an investment opportunity is created (post summer experience or at some point down the road), we'd be thrilled, but that’s not the primary goal. We’ve enjoyed working with dozens of teams since the program began and are always tinkering with the format based on input from the students. Hi Chris – this is John Vrionis from Lightspeed. I think this is a great discussion topic, thanks for posting. I appreciate your views and frankly agree with a number of the posts. There is certainly risk in seed funding from a VC and a possible stigma if that VC doesn’t want to continue investing in the next round. For the purposes of this thread I want to briefly explain our motivation behind our summer program. I look at it this way, at Lightspeed we’re in the business of fostering entrepreneurship. I started the program in 2006 because we had the resources and desire to provide students the platform they need to dedicate 100% of their time during the summer to their startup ideas. As a grad student, I (like most of my entrepreneurial classmates!) had to take jobs to pay the bills and therefore startup time was left to nights and weekends. When I joined Lightspeed and saw there was willingness to offer something better, we decided to give it a try.

We don’t ask for equity or a right to invest. We never intended it be an incubator or a seed program. We honestly feel it is a privilege to work with such bright, energetic people at this stage in their careers and enjoy building the relationship. Of course if an investment opportunity is created (post summer experience or at some point down the road), we'd be thrilled, but that’s not the primary goal. We’ve enjoyed working with dozens of teams since the program began and are always tinkering with the format based on input from the students.

]]> By: Weekend Reading #2 http://cdixon.org/2009/10/30/the-most-important-question-to-ask-before-taking-seed-money/comment-page-1/#comment-4582 Weekend Reading #2 Thu, 05 Nov 2009 00:04:18 +0000 http://www.cdixon.org/?p=1746#comment-4582 [...] The most important question to ask before taking seed money [...] [...] The most important question to ask before taking seed money [...]

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