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Seed and friends-and-family rounds were virtually identical in 2008

Kent Goldman · 20VC: Using Valuation As A Litmus Test, Why Valuation Does Not Matter At Seed Stage & How Seed Funds Can Serve Founders Better with Kent Goldman, Founder @ Upside Partnership · Dec 28, 2016 · at 6:23

Kent Goldman, founder of Upside Partnership, explains how the structure and size of seed funding rounds shifted dramatically between 2008 and 2014.

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“In 2008, there's very little difference between a seed round and a friends and family round”

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More from Kent Goldman

Prediction Held up
Upside Partnership will remain small because scaling breaks the seed fund model
“The vision is to continue to be a small fund. Somewhere where it is now, the second fund that we raise is forty four million. I think sort of if I get too far above that, the model we're seeking to work with begins to break down a little bit. There may be addi…”
Kent Goldman Dec 28, 2016 ▶ 20:52 20VC: Using Valuation As A Litmus Test, Why Valuation Does Not Matter At Seed Stage & How Seed Funds Can Serve Founders Better with Kent Goldman, Founder @ Upside Partnership
Prediction Not checkable as stated
Upside Partnership expects to deploy 70% of its capital into follow-ons
“We expect about 70% of that will actually be deployed into follow-on investments.”
Kent Goldman Dec 28, 2016 ▶ 7:44 20VC: Using Valuation As A Litmus Test, Why Valuation Does Not Matter At Seed Stage & How Seed Funds Can Serve Founders Better with Kent Goldman, Founder @ Upside Partnership
Insight
Seed valuation serves as a conviction litmus test, not a price filter
“So internally, when I think about valuation, I almost use it as a litmus test for my own enthusiasm, my own belief in whether or not a company can achieve its high aims. But I don't focus on it sort of that much at the seed stage.”
Kent Goldman Dec 28, 2016 ▶ 14:44 20VC: Using Valuation As A Litmus Test, Why Valuation Does Not Matter At Seed Stage & How Seed Funds Can Serve Founders Better with Kent Goldman, Founder @ Upside Partnership
Disclosure
Upside Partnership stops writing follow-on checks at a $100 million valuation
“So before I mentioned, usually we Peter, you know, upside has been petering out as companies hit a hundred million dollars in valuation.”
Kent Goldman Dec 28, 2016 ▶ 15:12 20VC: Using Valuation As A Litmus Test, Why Valuation Does Not Matter At Seed Stage & How Seed Funds Can Serve Founders Better with Kent Goldman, Founder @ Upside Partnership
Disclosure
Upside Partnership prefers not to take board seats in portfolio companies
“So I don't worry about whether or not we have a board seat. I, in fact, I almost prefer to sort of not have a board seat.”
Kent Goldman Dec 28, 2016 ▶ 15:51 20VC: Using Valuation As A Litmus Test, Why Valuation Does Not Matter At Seed Stage & How Seed Funds Can Serve Founders Better with Kent Goldman, Founder @ Upside Partnership
Insight
Thematic investing fails at the seed stage because it happens too late
“I think it's very hard to be thematic at the seed stage. I think generally by the time you can identify a theme at the seed stage, it's probably too late.”
Kent Goldman Dec 28, 2016 ▶ 18:22 20VC: Using Valuation As A Litmus Test, Why Valuation Does Not Matter At Seed Stage & How Seed Funds Can Serve Founders Better with Kent Goldman, Founder @ Upside Partnership
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