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Wow, quite a lot of money to raise for a YC company, isn't it? Vinod Khosla is a million percent more knowledgeable than I, so obviously they've got it going on at Xobni. But why a $4M first round?
This seems like an extraordinary amount of money.
At startup school, at the end, Adam was giving some advice of making a bold statement at the start, then scaling it down telling you how you're going to get there. That was great salesmanship, and GREAT advice. Most of what I heard during startup school and from talking to other entrepeneurs was vague ideas, just a jumble of thoughts.
In business, presentation counts for alot. Don't forget this. Ever.
Wow, quite a lot of money to raise for a YC company, isn't it? Vinod Khosla is a million percent more knowledgeable than I, so obviously they've got it going on at Xobni. But why a $4M first round?
"But why a $4M first round?" The inside scoop is that Vinod sneezed when he was opening his wallet and that's the pocket money he had on him. Really though I think it's probably so they don't ever have to take another round before they're profitable or exit.
It would be in their interest to take as little money as possible early on, so that they give up less of the company's equity.
Then - later when the business model has proven itself - and the valuation is higher - take on additional capital.
You'll be giving up much more equity if you take a million in funding in the first round, instead of the third.
I met Adam yesterday and he seems to be doing what he needs to be doing. Good luck to you guys!
You're a riot! --star