Anatomy of a Seed Round During Covid-19
freshpaint.io
Anatomy of a Seed Round During Covid-19
1–10 of 14 posts
Re: Anatomy of a Seed Round During Covid-19
#2Thanks for writing this. Is this tree of 38 small checks what most seed round looks like? Needing to manage the chemistry of that many people gives huge meaning to when funded founders say, if they could do it again they would bootstrap.
Re: Anatomy of a Seed Round During Covid-19
#3Thanks for writing this. Is this tree of 38 small checks what most seed round looks like? Needing to manage the chemistry of that many people gives huge meaning to when funded founders say, if they could do it again they would bootstrap.
I think some seed rounds work this way. Some seed rounds have a small number of large checks that fill up the entire round.
For managing chemistry, the extent of our interaction with most of the investors is they are on our investor mailing list. Besides that, we ask them when we need help with something.
Re: Anatomy of a Seed Round During Covid-19
#4Thanks for writing this. Is this tree of 38 small checks what most seed round looks like? Needing to manage the chemistry of that many people gives huge meaning to when funded founders say, if they could do it again they would bootstrap.
A large number of small checks is common in seed rounds. A piece of unsolicited advice: put the checks into escrow with your lawyer and set a minimum raise threshold. It will make it easier to attract capital if investors know you’re only committing them to a successful raise.
Re: Anatomy of a Seed Round During Covid-19
#5It's always interesting to me to see a platform like this that puts so much focus on raising money while their first tier product is free. In fact it says FREE FOREVER! Their other pricing is custom in which I'd have to contact them. I always have a hard time understanding what the appeal is to a seed investor in a product that is going to be free for the vast majority of users.
Anyone smarter than I am have any insights into this? Does a company like this miss out on product development because they are spending so much time raising money?
Re: Anatomy of a Seed Round During Covid-19
#6It's always interesting to me to see a platform like this that puts so much focus on raising money while their first tier product is free. In fact it says FREE FOREVER! Their other pricing is custom in which I'd have to contact them. I always have a hard time understanding what the appeal is to a seed investor in a product that is going to be free for the vast majority of users. Anyone smarter than I am have any insi…
As a paying customer of Freshpaint, my perspective is they are building a great product with a clear value proposition.
The steady stream of product improvements tells me they are still very focused on product development.
Re: Anatomy of a Seed Round During Covid-19
#7> Freshpaint collects behavioral customer data from your website and app, and sends that data to hundreds of analytics and marketing tools in one click.
Oof. I'm sure there are many people who want this thing, but I really of wish our economy weren't structured so that pouring over a million bucks into the N+1th surveillance ad-tech thing seemed like a good investment.
Re: Anatomy of a Seed Round During Covid-19
#8The visual map of where the money came from is incredibly helpful. Thank you!
Direct link for the lazy: https://uploads-ssl.webflow.com/5dad2b1e508f04886d0245c3/5f3...
Re: Anatomy of a Seed Round During Covid-19
#9What did you guys get diluted to? :( I hope this was a good stable valuation across all investors.
What's the value in raising really low amounts like 5k? would it not have made sense to keep a minimum amount e.g. > 50k/100k?
Re: Anatomy of a Seed Round During Covid-19
#10What did you guys get diluted to? :( I hope this was a good stable valuation across all investors. What's the value in raising really low amounts like 5k? would it not have made sense to keep a minimum amount e.g. > 50k/100k?
You want to get friends, family or certain operators to spend time and help the company. Lot of individuals don't have $50k-100k to invest, but they could invest $5k-20k and that way have skin in the game.
As a founder/company, doesn't really matter to me if a person invests $5k vs $50k if they are just engaged and helpful. For example someone who really understand sales and can teach you, can be more valuable than a random angel investor who don't have any particular skills other making intros to their network.
However, you don't usually want to raise the whole round from $5k investors since it can be a lot of work, no-one has a bigger stake, you add a lot of names on the cap table and its going to be hassle each time you do additional financing.