1/ Been thinking about massive terrain b/w angel/pre-/seed and institutional financing. Quick thoughts I'm working through this morning...
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Replying to @semil
2/ Essentially 2 types of "second seeds." Type 1 = most key insiders want to re-invest, no questions asked. Rare for outsiders to invest.
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Replying to @semil
3/ Type 2 = most insiders say "we don't do these," so harder to bring in outsiders unless unique in some way, flat price, strong recs
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Replying to @semil
4/ Early stage co's wise to assume a rise in Type 2, as well as seed firms laying out clearer policy against extensions w/o strong lead.
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Replying to @semil
5/ Conversely, Type 1's lay groundwork for solid recommendation to larger VC fund, where proof of insider validation can be double-checked.
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Replying to @semil
6/ Based on this, tip for both Type 1 & 2: keep insiders warm & happy, b/c they're often needed in both cases for different reasons. /fin
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same logic as customers. Future revenue could either be more $ from existing customers or referrals - either way, keep them happy.
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