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Perspectives on entrepreneurship, startups and venture capital from K9 Ventures.

Tag Archives: Series A

The New Venture Landscape

In May 2011, I wrote the post: Investor Nomenclature and the Venture Spiral. That post got a lot of attention because back then all the buzz was about “Super Angels.” The venture landscape was evolving and had reached a point where Super Angels were an important part of the ecosystem.¬†Well, now in 2014, almost 3 […]

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The Curse of Over-Capitalization

For VCs money is a commodity. VCs also operate in a limited time window. Now, combine those two motivations that venture investors have: 1) ownership, 2) quick growth, and what do you get? You get a situation whether investors are incentivized to put in more money into a company, not only to buy more equity, but also to fund the quick growth. In fact, it becomes a vicious circle. First, a company may get encouraged to raise more money that it really needs, just so that the venture fund can get to it’s desired level of ownership. Then the same company gets encouraged to spend that money to accelerate and to grow quickly, which in turn means it runs out of that money more quickly, and then needs to raise even more money.

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Hope and Numbers

The seed round happens on hope. The Series A happens on a combination of hope and numbers. And the Series B and beyond, happen largely based on numbers.

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