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Songkick (YC S07) raises $4m series A

uk.techcrunch.com

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Re: Songkick (YC S07) raises $4m series A

#11

Post by mattmaroon »

uuilly wrote: post #10
mattmaroon wrote: post #8

Earlier quoted context omitted.

It's arbitrary. A lot of people call the first small equity round a Series AA. My guess is that their first round was either a convertible or a Series AA that was mislabeled as a Series A in Crunchbase. Or this one was a Series B that was mislabed a Series A. Either way, it doesn't really mean much. And "seed round" is more of a general term. Your Series A could be your seed round. It doesn't have any specific meanin…

A series A means that you're issuing class A stock. An angel round means your issuing a note that will eventually convert to class A stock, aka a convertible note. The threshold between an angel round and a series A is determined by your articles of incorporation. It's usually between 2 and 5 million. Before your series A you have no valuation b/c it would be a waste of money to determine it. Once you have matured an…

Our articles of incorporation did not specify what future rounds would be called based on amounts raised at all. I don't think most do. And to my knowledge, there is no law requiring that. I'm pretty sure you can call your first round a Series C if you want to, though it would probably not be a good idea.

My point was that it's a custom, not a law, and the distinction between an AA and an A is arbitrary.

Re: Songkick (YC S07) raises $4m series A

#13

Post by konsl »

wheels wrote: post #4

Is there actually a technical distinction between a Series A and a seed round? (I've always assumed it was just size and order of progression.) Their last funding was already $1 million, so wouldn't this be more like a small Series B?

According to Nivi, anything above $500K is Series A country: http://venturehacks.com/articles/seed-valuation

Re: Songkick (YC S07) raises $4m series A

#14

Post by rantfoil »

uuilly wrote: post #10
mattmaroon wrote: post #8

Earlier quoted context omitted.

It's arbitrary. A lot of people call the first small equity round a Series AA. My guess is that their first round was either a convertible or a Series AA that was mislabeled as a Series A in Crunchbase. Or this one was a Series B that was mislabed a Series A. Either way, it doesn't really mean much. And "seed round" is more of a general term. Your Series A could be your seed round. It doesn't have any specific meanin…

A series A means that you're issuing class A stock. An angel round means your issuing a note that will eventually convert to class A stock, aka a convertible note. The threshold between an angel round and a series A is determined by your articles of incorporation. It's usually between 2 and 5 million. Before your series A you have no valuation b/c it would be a waste of money to determine it. Once you have matured an…

I love the code explanation. grin

Re: Songkick (YC S07) raises $4m series A

#18

Post by ian »

wheels wrote: post #4

Is there actually a technical distinction between a Series A and a seed round? (I've always assumed it was just size and order of progression.) Their last funding was already $1 million, so wouldn't this be more like a small Series B?

One way in which this can occur is if you raise a seed round in convertible debt which converts into preferred stock at a following Series A.

Re: Songkick (YC S07) raises $4m series A

#19

Post by mattmaroon »

uuilly wrote: post #10
mattmaroon wrote: post #8

Earlier quoted context omitted.

It's arbitrary. A lot of people call the first small equity round a Series AA. My guess is that their first round was either a convertible or a Series AA that was mislabeled as a Series A in Crunchbase. Or this one was a Series B that was mislabed a Series A. Either way, it doesn't really mean much. And "seed round" is more of a general term. Your Series A could be your seed round. It doesn't have any specific meanin…

A series A means that you're issuing class A stock. An angel round means your issuing a note that will eventually convert to class A stock, aka a convertible note. The threshold between an angel round and a series A is determined by your articles of incorporation. It's usually between 2 and 5 million. Before your series A you have no valuation b/c it would be a waste of money to determine it. Once you have matured an…

Now that I reread that, you're totally wrong. Angels are individual investors. They can and often do participate in equity rounds. They often contribute the entire amount. You can have an angel-funded series A. VCs could also do a convertible. It's called venture debt and it's rare but it happens.

No company that I've ever heard of specifies in their Articles what amount forces a future round to be equity rather than debt. It's all up to the company and investors. If your lawyers told you all of that stuff, seek new representation.

Re: Songkick (YC S07) raises $4m series A

#20

Post by mattmaroon »

rantfoil wrote: post #14
uuilly wrote: post #10

Earlier quoted context omitted.

A series A means that you're issuing class A stock. An angel round means your issuing a note that will eventually convert to class A stock, aka a convertible note. The threshold between an angel round and a series A is determined by your articles of incorporation. It's usually between 2 and 5 million. Before your series A you have no valuation b/c it would be a waste of money to determine it. Once you have matured an…

I love the code explanation. grin

It needs serious debugging.
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