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Kima Ventures Will Allow Startups to Raise $150K Within 15 Days Via AngelList

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Re: Kima Ventures Will Allow Startups to Raise $150K Within 15 Days Via AngelList

#41

Post by 6cxs2hd6 »

deathflute wrote: post #38
pg wrote: post #32

Earlier 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.

IIUC a convertible note better for the investor in less-good outcomes because it's a note -- it's debt, not equity. In a bankruptcy equity holders are S.O.L. Creditors get to divvy up whatever is left. Which may not be much, but it's > 0 and they have a voice at the table.

Re: Kima Ventures Will Allow Startups to Raise $150K Within 15 Days Via AngelList

#42

Post by adambenayoun »

throwaway893 wrote: post #36
adambenayoun wrote: post #14

I 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.

They're price sensitive and are quite open about it - I don't see why it would create resentment?

If they are approaching you and are trying to negotiate a lower price while other investors are on board on a higher valuation (I saw this happens quite a lot), I think that would be the kind of behavior that would create resentment both on the other investors and founders side.

However I haven't experienced it and my experience was that they turned me down because my valuation was too high for them and out of their comfort zone - did they try to negotiate me to a lower valuation? No.

Re: Kima Ventures Will Allow Startups to Raise $150K Within 15 Days Via AngelList

#43

Post by michaelochurch »

jber wrote: post #7
jaredmck wrote: post #6

Terrible terms will attract terrible companies.

Why do you think our terms are "terrible"?

My worry would be the board seat.

If I were to go out on my own, I'd quite possibly take those numbers ($150k for 15%) pre-MVP if it meant 2 years of autonomy. I wouldn't give a board seat up, though. I also think $100-150k per founder is a more reasonable infusion (1-2 years).

Re: Kima Ventures Will Allow Startups to Raise $150K Within 15 Days Via AngelList

#44

Post by michaelochurch »

minimaxir wrote: post #18
deathflute wrote: post #4

What do you guys think about the terms of the deal? Isn't 15% a lot to give out for just 150k?

Y Combinator is $20k (+ $80k maybe) for ~6% equity.

YC gets those terms because of what it does for a company's reputation, and the contacts made through YC itself.

Re: Kima Ventures Will Allow Startups to Raise $150K Within 15 Days Via AngelList

#45

Post by josh_fyi »

jber wrote: post #17
josh_fyi wrote: post #12

These terms are so good that Kima may have put itself in a strange position of looking "too good to be true." Standoffish arrogance in VCs is unpleasant, but it can signal that the VC is so successful that he or she doesn't need to be nice. If only the straightforward approach worked!

Ok, so the good strategy is to give a bad deal to entrepreneurs ? ;-)

No, my point was not that. My point is that sometimes, showing how tough you are makes you appear more successful and more desirable--a type of signaling.

I'd certainly prefer a situation where no one has to do this, much less VCs!

Re: Kima Ventures Will Allow Startups to Raise $150K Within 15 Days Via AngelList

#46

Post by [deleted] »

jber wrote: post #27
Jd wrote: post #21

Earlier quoted context omitted.

Which market? You mean the worldwide market. If I had to guess, I'd say you are probably 60% EU + Russia, 10% Israel, 10% US, 20% other. Certain things might make sense in other places that don't make sense in the US.

You can't imagine how most US startups will be happy to get that deal. There are thousands of startups trying to get funding desperately in the US too There are also founders who are not interested to lose their time by pitching many VCs...and prefer to get that term in 15 days instead of better terms in 5 months...

[deleted]

Re: Kima Ventures Will Allow Startups to Raise $150K Within 15 Days Via AngelList

#47

Post by malandrew »

I can see this as being great for inexperienced founders looking at getting funding for their first stab at being an entrepreneur. However, any founders that are talented and have worked as an engineer at at least one moderately or highly successful company should be able to raise money on much better terms. Giving up 15% for $150k seems pretty steep, especially when the investor in question is spread so thin. Money and maybe occasional introductions are going to be pretty much the only forms of involvement that the investor could realistically invest in you.

Re: Kima Ventures Will Allow Startups to Raise $150K Within 15 Days Via AngelList

#48

Post by jahewson »

pg wrote: post #32
jahewson wrote: post #24

Earlier 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.

Ok I see, so it's more like 8% at $10m.
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