Opinion certainty 4/5 debate potential 3/5

Harris disagrees with seed funds that refrain from follow-on investing

Hadley Harris · 20VC: The Evolution Of Mobile & The Importance Of Follow On Funding with Hadley Harris @ Eniac Ventures · Feb 3, 2016 · at 10:35

Hadley Harris, founding general partner at Eniac Ventures, responds to Harry Stebbings' question regarding Founder Collective's strategy of intentionally abstaining from follow-on funding.

0:00 / 0:05exact quote · 5.1s
720p mp4 · rendered on demand · StarZero watermark
“I don't agree with the idea of not following on in your good companies.”

quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →

More from Hadley Harris

Prediction Held up
Overvalued late-stage startups face severe down-round risks in 2016
“I think there's a lot of companies now, especially at the later stages, that are going to have a lot of issues in the next year because they raised rounds at too high of a valuation. The market has corrected, and now they need to raise rounds at down rounds or…”
Hadley Harris Feb 3, 2016 ▶ 12:04 20VC: 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 Harris Feb 3, 2016 ▶ 11:12 20VC: 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 Harris Feb 3, 2016 ▶ 16:32 20VC: The Evolution Of Mobile & The Importance Of Follow On Funding with Hadley Harris @ Eniac Ventures
Assertion Supported
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 Harris Feb 3, 2016 ▶ 17:25 20VC: 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
“Raising enough money in the seed to that we have kind of 18 to 24 months to do what we need to do to get to the A. The biggest mistake I see is companies not raising a large enough seed where, and you look at it, it's like, well, there's really no room for you…”
Hadley Harris Feb 3, 2016 ▶ 19:16 20VC: The Evolution Of Mobile & The Importance Of Follow On Funding with Hadley Harris @ Eniac Ventures
Opinion
Startups raising a second Seed round have lower chances of success
“Now, companies have, certainly there's a bunch of companies that have raised second seeds and have gone on to be successful, but once you get to that point, I think your chances of success are lower.”
Hadley Harris Feb 3, 2016 ▶ 20:39 20VC: The Evolution Of Mobile & The Importance Of Follow On Funding with Hadley Harris @ Eniac Ventures
Made with StarZero

Turn any episode into a week of clips.

This entire site, over 1,200 episodes transcribed, diarized, checked and made playable, runs on the StarZero media pipeline. Drop in your own episode and the podcast clipper finds the moments worth sharing, cuts them, captions them, and reframes them for every feed.