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£10k for an 8% equity stake, how does this compare to other funding in London? The article mentions the "Founder Institute" provides £1k for 3.5%.
Seedcamp is "€25k for 5% w/ optional further €50k for no more than 2% (totalling €75k for 7%)" [0], which at current exchange rates is around £18K for 5%. [0] http://seedcamp.com/our-deal-terms/
also, "pre-birth" and "pre-kindergarten"
£10k for an 8% equity stake, how does this compare to other funding in London? The article mentions the "Founder Institute" provides £1k for 3.5%.
This is a great quote, but the reality is more like: "If we didn't start a firm that invests in companies before they exist, we wouldn't have any dealflow."
> Despite the risk-–30% of the entrepreneurs EF funds drop out without ever creating a company –Clifford said he has no difficulty finding investors for his venture firm.
Most prospective LPs can't get into top funds, but in markets like the one we have today, they don't go home. They funnel their money into second, third and fourth-tier funds. There were a lot of these in the first .com boom.
£10k for an 8% equity stake, how does this compare to other funding in London? The article mentions the "Founder Institute" provides £1k for 3.5%.
£10k for an 8% equity stake, how does this compare to other funding in London? The article mentions the "Founder Institute" provides £1k for 3.5%.
Doesn't YC give 120K for 7%? An incubator/accelerator that isn't as good as YC (and therefore has less to offer) should have a better deal than that to make up for the difference. Given YC as a baseline, an investment of 10K GBP == 15488 USD should be taking less than 0.9% of the company.
Only from the perspective of someone being recruited by both YC and the alternative. If YC isn't an option (as it isn't for most people), then it doesn't much matter whether or not YC is offering a better deal to someone else.
don't understand why they keep saying it's a VC in the article. It's a startup accelerator
also, "pre-birth" and "pre-kindergarten"
Well, over 90% of getting funded by VCs is stuff that happens before birth, so yes, that is literally true.
Basically you need to invest in fundamentals while the asset itself is at its cheapest, and "not yet existing" may happen to be among the cheapest states of the asset