Mattermark Has Raised $2M in Our Second Seed Round
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Re: Mattermark Has Raised $2M in Our Second Seed Round
#2> I’ll tell you why we took a second seed round — we were going to run out of money and couldn’t raise a traditional Series A on acceptable terms.
Money quote, I appreciate hearing the truth
Re: Mattermark Has Raised $2M in Our Second Seed Round
#3This is essentially a Series A, so why call it a "second seed round"? Feels questionable to me.
Re: Mattermark Has Raised $2M in Our Second Seed Round
#4This is essentially a Series A, so why call it a "second seed round"? Feels questionable to me.
It was raised with convertible debt, so no valuation was given. I think that makes it a seed round instead of a Series A.
Re: Mattermark Has Raised $2M in Our Second Seed Round
#5This is essentially a Series A, so why call it a "second seed round"? Feels questionable to me.
No valuation, because of convertible debt
No board seats
Not a lot of money raised, so not as dilutive as typical Series A
No expectation to hit "Series B" type metrics next time they raise
Re: Mattermark Has Raised $2M in Our Second Seed Round
#6This is essentially a Series A, so why call it a "second seed round"? Feels questionable to me.
Danielle explains this clearly in the article. Mattermark "couldn’t raise a traditional Series A on acceptable terms."
"I quickly discovered expectations for a B2B Series A were $1.5M in annual revenue run rate — we were growing fast, but still only 1/3 of the way there at the time."
They don't have enough revenue so they went for another seed round instead. It's not questionable; it's logical and helped her to keep the company moving forward.
Re: Mattermark Has Raised $2M in Our Second Seed Round
#7Wait, Mattermark and Matterport were started by the same guy?
Re: Mattermark Has Raised $2M in Our Second Seed Round
#8Did their valuation really rise that much by pivoting that a16z decided to double down or was there a cap on the first round?
Re: Mattermark Has Raised $2M in Our Second Seed Round
#9Congratulations, seems like a great way to thread the needle. Perhaps another good metric might be ratio of fund raising to non-fundraising time. In many ways startups are like rockets and that ratio is their mass fraction, money consumed relative to value delivered into stable 'orbit.' :-)
Re: Mattermark Has Raised $2M in Our Second Seed Round
#10I quickly discovered expectations for a B2B Series A were $1.5M in annual revenue run rate
That's a great news-you-can-use for many people on HN, so I thought I'd excerpt it.
It feels... I don't know. Markets are made where buyers and sellers feel that the offer is mutually acceptable, so I don't want to say "That is too high." I'd say, as somebody who spends a lot of time in B2B SaaS (though only with a toe dipped in the funded sides of that pond), that if you're waiting for $1.5 million in revenue you lose all standing to whinge about how darned pricey SaaS companies are these days. You're attempting to buy a very different thing than was historically bought in a transaction called Series A.