The Silliness Of Recapping Seed Rounds
Here’s the scenario. A company raises $2m of seed money from angels in a convertible note with a $6m cap. Assuming equity is raised at or above that cap, the
Here’s the scenario. A company raises $2m of seed money from angels in a convertible note with a $6m cap. Assuming equity is raised at or above that cap, the
At Foundry Group, we have a deeply held belief that we benefit from our local community (Boulder, in our case) and that we have a responsibility, as we have success, to give back to our local community. My partner Seth Levine just had an excellent OpEd in the Boulder Daily Camera explaining this. It’s titled Entrepreneurs can give back, by giving early to EFCO. In it he explains more about Entrepreneurs Foundation of Colorado (EFCO) and Pledge 1%, two organizations we have helped create.
In an effort to buy real estate in burgeoning startup communities around the United States while more deeply engaging in the startup community, my partners and I have bought a house in the Cass Corridor neighborhood in Detroit. Jason Mendelson grew up in Detroit so this is a nice homecoming for him. If you’ve followed my efforts with my Kansas City Fiber House, you’ll know where we are going with this. This time the four of us bought the house together (personally, not with our fund) and are providing it to Techstars teams in the Techstars Mobility program which is based in Detroit.
I’ve been heads down this week on a handful of transactions. As a result, I haven’t been paying much attention to the world around me, but it’s inevitable that some stuff leaks through in random conversations, emails that I get and skim to respond to later, or stuff I notice, even though I’m not looking. While I was just in the shower, I had a handful of random things roll through my head that I realized were creating intellectual dissonance for me. They are the kind of thing that I like to dissect and chew on, and expect I’ll blog deeper about some of them. Whenever I feel intellectual dissonance, it’s usually a leading indicator of something. It’s not necessarily “something bad”, but it’s almost always “something different.”
I’m running another competition for a startup to live for a year for free in my Kansas City FiberHouse. When I bought my house in Kansas City in 2013, I announced my intentions clearly. “I’m not going to be living in it. Instead, I’m going to let entrepreneurs live / work in it. Rent free. As part of helping create the Kansas City startup community. And to learn about the dynamics of Google Fiber. And to have some fun.”
I got a random email from Brett Hagler last Thursday asking me to help his startup New Story. I looked at his web site and quickly told him it wasn’t something we’d be into exploring as an investment. He wrote back immediately, telling me that he wasn’t looking for investment, but had created a non-profit that used crowdfunding to finance and build life-changing houses around the world. Our mission is to create life-changing stories that transform communities. We’re focused on funding 100 homes in 100 days in Leveque, Haiti.
I hope you had a nice 4th of July yesterday. Amy and I hid out all day in Longmont, playing with the dogs, napping, and reading. As a result yesterday was a three book day. One of them was Semi-Organic Growth: Tactics and Strategies Behind Google’s Success by George T. Geis. If you are a Google watcher, aspire to have you company acquired by Google some day, or just want to understand Google’s approach to acquisitions (which Geis calls “semi-organic growth”) this is a must read book that is well worth the money.
I’m feeling fine today. But I know many entrepreneurs who aren’t. They are under intense pressure, worrying about an endless stream of things coming at them, suffering under the weight of imposter syndrome and other sources of anxiety. And, in some cases they are depressed, but trapped by our own culture which stigmatizes depression. Earlier this week Biz Carson wrote an excellent article titled There’s a dark side to startups, and it haunts 30% of the world’s most brilliant people. It started with Austen Heinz’s suicide (Austen was the founder of Cambrian Genomics) and then built into a wide ranging discussion about depression among entrepreneurs.
I’m in Telluride for the day. I drove from Aspen (where we are hanging out for the week) through some of the most beautiful mountains and countryside you will ever see and ended up in the magical place called Telluride. I’m here for the Telluride Venture Accelerator Demo Day. This is their third program and I’m looking forward to the day. While Telluride is known for being a super high end beautiful magnificent ski town, it’s also the second home to a lot of very interesting and successful people who are committed to making sure their corner of paradise has a long term sustainable future beyond just tourism.
Five years ago, in August 2010, I asked the question Have We Reached The Software Patent Tipping Point? Oracle sued Google over a series of Java-related patents they got when they acquired Sun. My favorite line from the whole thing was James Gosling’s (who was one of the authors of one of the original patents and a key creator of Java) when he wrote The shit finally hits the fan.