YC grad Workramp lands $1.8M seed round • Hacker News Board

Re: YC grad Workramp lands $1.8M seed round

#11

Post by philip1209 » Thu, Dec 01, 2016, 8:12 PM UTC

CalChris wrote: post #10

How is this a seed round at $1.8M after YC already put in its standard $120,000 for 7%? It seems more like a (light) Series A round for scaling.

According to our lawyer, here's how rounds are being classified right now:

$1-4M is considered "seed" round, and is SAFE/note or equity

$5M+ is considered "A" round, and is equity plus normally a board seat

Re: YC grad Workramp lands $1.8M seed round

#12

Post by tptacek » Thu, Dec 01, 2016, 8:49 PM UTC

CalChris wrote: post #10

How is this a seed round at $1.8M after YC already put in its standard $120,000 for 7%? It seems more like a (light) Series A round for scaling.

My understanding is that the most important attribute of an A round is that it fixes a specific valuation on your company.

Lots of companies take numerous "seed rounds"; some are continuously funding during the seed stage. They're not out of "seed" until they take a VC round that imposes a valuation on them.

Re: YC grad Workramp lands $1.8M seed round

#13

Post by daniel_brdn » Thu, Dec 01, 2016, 8:59 PM UTC

Congrats to Mike & Percia and the Workramp team!

Re: YC grad Workramp lands $1.8M seed round

#14

Post by jasonjei » Thu, Dec 01, 2016, 10:30 PM UTC

Ted! This is awesome news. Let me know if you're around SF. Would love to hang. Jason

Re: YC grad Workramp lands $1.8M seed round

#15

Post by gumby » Thu, Dec 01, 2016, 10:39 PM UTC

philip1209 wrote: post #11

CalChris wrote: post #10

How is this a seed round at $1.8M after YC already put in its standard $120,000 for 7%? It seems more like a (light) Series A round for scaling.

According to our lawyer, here's how rounds are being classified right now: $1-4M is considered "seed" round, and is SAFE/note or equity $5M+ is considered "A" round, and is equity plus normally a board seat

These names are arbitrary (though they can do some signalling). Especially the "angel" and "seed" which are basically the same thing.

Basically an "investment round" is when you sell equity (and thus set a price) the rest is debt, both legally and practically. If you don't need to file form D you didn't sell anything!