Any advice for someone in the early idea phase? What steps would one do before applying to this?
Kima Ventures Will Allow Startups to Raise $150K Within 15 Days Via AngelList
31–40 of 48 posts
Re: Kima Ventures Will Allow Startups to Raise $150K Within 15 Days Via AngelList
#32Earlier quoted context omitted.
Y Combinator is $20k (+ $80k maybe) for ~6% equity.
The $80k is a convertible note though, so expect it to be converted into another ~25% equity at that valuation.
It doesn't convert at that valuation. It converts in a future equity round, usually the series A, valuations for which are on average over $10 million lately.
Re: Kima Ventures Will Allow Startups to Raise $150K Within 15 Days Via AngelList
#33Any advice for someone in the early idea phase? What steps would one do before applying to this?
GSD (Get Shit Done) and get some traction. Without traction, you're just a guy with an idea in a queue of thousands...
Re: Kima Ventures Will Allow Startups to Raise $150K Within 15 Days Via AngelList
#34Any advice for someone in the early idea phase? What steps would one do before applying to this?
GSD (Get Shit Done) and get some traction. Without traction, you're just a guy with an idea in a queue of thousands...
I thought the purpose of this type of funding was to fund the idea stage, so you wouldn't need traction yet.
Re: Kima Ventures Will Allow Startups to Raise $150K Within 15 Days Via AngelList
#35I am a co-founder at a startup that just graduated from 500startups and as part of my fundraising process, I decided to approach Jeremie. I think what's this post is missing is some context, Jeremie is running one of the most active seed fund in the world (200 investments is no feat) and they have a stellar reputation which is why I approached him - I did some due diligence with other entrepreneurs who provided me gr…
Every 1% of a billion dollars is $10,000,000 ... just saying. :)
If it's your only option for money, then sure - though if you're that ready for investment where a firm will give you a response/money within 15 days (along with what due diligence are they doing on you?) then you should likely shop around. $150k for 14%, 13%, 12%?
Obviously it doesn't just come down to %. I'd rather give some people 10% or 15% or more if they were the right fit. :)
So overall it's a moot point, but it's also not in some circumstances. :)
Re: Kima Ventures Will Allow Startups to Raise $150K Within 15 Days Via AngelList
#36I am a co-founder at a startup that just graduated from 500startups and as part of my fundraising process, I decided to approach Jeremie. I think what's this post is missing is some context, Jeremie is running one of the most active seed fund in the world (200 investments is no feat) and they have a stellar reputation which is why I approached him - I did some due diligence with other entrepreneurs who provided me gr…
I've heard mostly negative things about Kima.
There's Jeremie's public negative statements about a company they invested in (Sparrow): https://news.ycombinator.com/item?id=4277331.
They're also very price sensitive, which can create resentment even in companies that take their money.
Re: Kima Ventures Will Allow Startups to Raise $150K Within 15 Days Via AngelList
#37Earlier quoted context omitted.
Terrible is a strong word, but I don't think these terms are good for lots of companies. Each company is at a different stage when they first start raising seed funding. Some companies might just be worth 1 MM, but if you have a strong team, great technology, a workable plan, and early customer interest/revenue 1 MM is a horrible deal. In my opinion these terms are great for some ventures and absolutely horrible for…
Agree with you that for it's not for everyone but for most early stage startups, it's a great deal. For the others, Kima Ventures still exists and we are investing at differents valuations (lower and higher)
I think it's best for super early stage ventures. If you're much further along, it's going to be a bad deal and possibly deter any future investment in your company due to the dead money (lack of follow-on).
Re: Kima Ventures Will Allow Startups to Raise $150K Within 15 Days Via AngelList
#38Earlier quoted context omitted.
The $80k is a convertible note though, so expect it to be converted into another ~25% equity at that valuation.
It doesn't convert at that valuation. It converts in a future equity round, usually the series A, valuations for which are on average over $10 million lately.
Thanks for the clarification. Thats what I thought. So convertible note is much better for the entrepreneur. It retains the optionality of doing well and consequently giving out less equity.
Re: Kima Ventures Will Allow Startups to Raise $150K Within 15 Days Via AngelList
#39I am a co-founder at a startup that just graduated from 500startups and as part of my fundraising process, I decided to approach Jeremie. I think what's this post is missing is some context, Jeremie is running one of the most active seed fund in the world (200 investments is no feat) and they have a stellar reputation which is why I approached him - I did some due diligence with other entrepreneurs who provided me gr…
I've heard mostly negative things about Kima. There's Jeremie's public negative statements about a company they invested in (Sparrow): https://news.ycombinator.com/item?id=4277331 . They're also very price sensitive, which can create resentment even in companies that take their money.
Use your main account if you want your comment to be taken seriously.
Re: Kima Ventures Will Allow Startups to Raise $150K Within 15 Days Via AngelList
#40Earlier quoted context omitted.
It doesn't convert at that valuation. It converts in a future equity round, usually the series A, valuations for which are on average over $10 million lately.
Thanks for the clarification. Thats what I thought. So convertible note is much better for the entrepreneur. It retains the optionality of doing well and consequently giving out less equity.
Notes aren't always better. It depends on the valuation cap at which they convert. A note with a low cap is just as dilutive as an equity investment at a low valuation. The YCVC note is uncapped, however, which means it's like getting part of your eventual equity round in advance.