Hadley Harris, founding general partner at Eniac Ventures, explains Eniac's policy regarding secondary seed and pre-Series A investments.
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“We generally don't participate kind of as a new investor in those when we have companies that need to do that, you know, we try and be as supportive as possible.”
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PredictionHeld up
Overvalued late-stage startups face severe down-round risks in 2016
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Opinion
Harris disagrees with seed funds that refrain from follow-on investing
“I don't agree with the idea of not following on in your good companies.”
Hadley HarrisFeb 3, 2016▶ 10:3520VC: The Evolution Of Mobile & The Importance Of Follow On Funding with Hadley Harris @ Eniac Ventures
Insight
Seed funds eliminate signaling risk by only following outside-led rounds
“If you always follow when they raise a new round from a new investor, you also get around any signaling issues.”
Hadley HarrisFeb 3, 2016▶ 11:1220VC: The Evolution Of Mobile & The Importance Of Follow On Funding with Hadley Harris @ Eniac Ventures
Opinion
Eniac Ventures dislikes founders who actively search for problems to fix
“Probably the type of team we like least, kind of in this area is teams that kind of stumble upon a problem, or they're just trying to find a problem to fix. The best teams are ones that kind of in their everyday life as an employee or as a consumer notice some…”
Hadley HarrisFeb 3, 2016▶ 16:3220VC: The Evolution Of Mobile & The Importance Of Follow On Funding with Hadley Harris @ Eniac Ventures
AssertionSupported
The steepest venture funding drop-off occurs between Seed and Series A
“You could argue that probably the biggest drop off happens between the seed and the a rather than the a and the b. And I think that's just because there is so much seed money and there are so many seed funds compared to a funds where, you know, you really, tha…”
Hadley HarrisFeb 3, 2016▶ 17:2520VC: The Evolution Of Mobile & The Importance Of Follow On Funding with Hadley Harris @ Eniac Ventures
Insight
Seed startups must raise enough capital for 18 to 24 months runway
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Hadley HarrisFeb 3, 2016▶ 19:1620VC: The Evolution Of Mobile & The Importance Of Follow On Funding with Hadley Harris @ Eniac Ventures
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