Silicon Valley isn’t over, but its influence is dwindling


This post is by Kevin Stevens, Intelis Capital from Venture Capital – VentureBeat


Click here to view on the original site: Original Post





GUEST: By now you’ve likely seen this week’s The Economist cover story titled “Peak Valley,” which features quotes from Claire Haidar. She is CEO of WNDYR, an Intelis Capital portfolio company. The article highlights outrageous costs of living, poor local government, and high operating costs as the catalysts behind an impend…Read More

How convertible notes drive founders away from emerging ecosystems


This post is by Kevin Stevens, Intelis Capital from Venture Capital – VentureBeat


Click here to view on the original site: Original Post





Recently, Crunchbase published a new case study on early-stage funding including the different types of deal structures, priced (equity) and unpriced (convertible notes or SAFES). The post was a useful, if very high level, overview of the early-stage funding process. However, due to this simplicity, the article painted a naive picture of how unpriced rounds often work in practice. While notes and SAFES have become the norm in recent years, it doesn’t mean they should be, especially in underserved ecosystems like Texas, Pittsburgh, or Atlanta.

In these metros, early-stage capital is scarce, thus increasing an investor’s negotiating leverage. Given that context, fundraising is often an extremely difficult hurdle to navigate for local entrepreneurs. Ultimately, unpriced rounds making up the majority of early-stage deals in emerging ecosystems can be shortsighted. Over the long term, it can limit a startup’s ability to raise future rounds and hinders the ecosystem as a whole Continue reading “How convertible notes drive founders away from emerging ecosystems”

How convertible notes drive founders away from emerging ecosystems


This post is by Kevin Stevens, Intelis Capital from Venture Capital – VentureBeat


Click here to view on the original site: Original Post





GUEST: Recently, Crunchbase published a new case study on early-stage funding including the different types of deal structures, priced (equity) and unpriced (convertible notes or SAFES). The post was a useful, if very high level, overview of the early-stage funding process. However, due to this simplicity, the article painted a naive picture of how…Read More