seed investment

“Seed investments in the UK have gone up 10 X in the last five years.”

“When a business is looking to raise, you know, a million dollars or even less, it becomes very difficult for you know, a multi-hundred million dollar, you know, nearly billion dollar fund make the math and the time investment work for that kind of a company.”

“We actually, at NextView, write an investment memo for every single seed investment we make.”

“So where we play is we like to see some early bit of revenue. So we, even if it's five K a month, we like to see some potential early indicator of product market fit. Maybe there's something that could be here. And of course there's a lot more to it than that,…”

“Because for every one of those checks that you write that gets there, there's like three or four that don't. And it's got to pay for the ones that don't get there. And that's the venture math, right? Your winners have to win big and they have to pay for all th…”

“To me, fundamentally, I think it's like very hard for a five billion dollar fund to have skin in the game on a five million dollar investment.”

“Doing a seed investment at five and exiting at five hundred million sounds great, but if you own 10% and you have a fifty million dollar fund, it's still only one X. One X doesn't pay the rent for anybody.”

“I think, I believe actually a group decision is the wrong way to make a seed investment.”

“The worst category of seed investments that I've made have been five on 25. They are slower. They lose urgency. They try and do too much too soon because they can do more than one thing at once. The founders lose proximity to customers. They're the worst.”

“I think we're going to see more and more of those. Right. Dilution in time. We'll see more and more seed investments eroded to three, four percent.”