Perspectives on Venture Capital
This is a great interview with the founder of Gumroad – his commentary (from 11:48 through 22:02) is a great real-world perspective on the pitfalls of taking venture capital before figuring out product-market-fit, the dangers of high liquidation preferences, and the groupthink of venture investors.
Commentary on Valuations for Seed Offerings
There is some insightful commentary on the current ‘frothy’ valuations for seed offerings for pre-revenue companies (7:59 through 18:30). I generally see both valuations and offering sizes are smaller in the Southeast than the West Coast (which is what these investors are describing), but it is definitely a ‘hot’ market for start-up companies looking to raise funds. Now is a good time to pull the trigger if you are looking to start a company and raise money via a seed financing.