This post is by Jeff Carter from Points and Figures
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We are a seed stage venture fund. We lead, invest a significant portion of our capital, serve on the board and do everything we can at seed to support the CEO and company so they can be successful. A lot of funds say they are “active” but they are active going to board meetings. We never take money to serve on the board. Getting our investment to appreciate is our pay.
We serve on the board if we lead the seed deal but we also do some other things:
- Find customers
- Find talent
- Advise; introduce to a mentor if they want it or need it
- Introduce to next round capital
- Find acquirers
It’s because we care. Not about us. We care about the company. When we invest, we go all in. Ask the folks we have invested in so far about us.
happens after we go off the board and the company moves on to the next round?
We get some more time on our hands as far as being prepared and going to board meetings. But, the rest of it stays the same until the company exits and we ring the cash register. As seed investors, we are on the opposite side of the table at the beginning. But, we are on the same side of the table from Series A on. We take the dilution hit just like a founder.
That’s something to find out about the people that invest in you at seed. Don’t ask them. Ask the portfolio companies they invested in, especially the ones that failed.