GenuineVC David Beisel's Perspective on Digital Change

July 8, 2014

This is an excerpt from the original post, found on NextView’s blog, The View From Seed, launched this week. Find the original post here.

As the VC seed market has institutionalized, especially over the past five years, there has emerged a prototypical seed round profile: $1M-$1.5M raised, the first non-friends-and-family capital, comprised of one to three institutional seed investors or larger VC funds, on a priced equity structure (though sometimes convertible note), with a valuation mechanism in place priced in the single digit millions.

While there has been much discussion about the variances on syndicate composition and structure, and of course pricing variance, but essentially the “deal” is becoming fairly standard for all parties. The standard seed round will buy the company 12 to 18 months of runway as it looks to prove out early-stage milestones to raise a Series A before running out of cash.

However, also occurring are a set of “seed” rounds which don’t look like the above, despite involving most of the same players.  They’re common enough to become sub-categories in and of themselves, but they are just atypical enough that they’re not as commonly discussed.

The following is a list of somewhat unusual (or at least less common) seed-like rounds. Note that some institutional VC investors who invest at the seed stage may also make these investments:

Continue reading this post on The View From Seed.

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  • I am a cofounder and Partner at NextView Ventures, a dedicated seed-stage venture capital firm making investments in internet-enabled startups. Read More »

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  • Rob Go
     - 29 minutes ago
    RT @joshk: 1/ There’s been a good discussion recently about the state of tech startup/venture market recently. Our thoughts: https://t.co/V…
  • David Beisel
     - 1 hour ago
    Thanks to everyone who made the #WebInnoTurns10 event so special last week. @PrettyInstant took great photos: http://t.co/ZNLxikDJt9
  • David Beisel
     - 1 hour ago
    The Growing Pre-Seed Opportunity In VC Financing on @CBinsights https://t.co/cREWyO7Gpe
  • Rob Go
     - 1 hour ago
    And the rebirth is complete. Congrats @Accomplices on the new name. The Phoenix rising from the Atlas and FKA ashes :)
  • Lee Hower
     - 1 hour ago
    the "crazy" play hasn't worked out for Greece and that which seemed inevitable finally seems to be playing out

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