What We've Learned
It's a lot of work, but it's worth it.
We have several seed investments doing very well, so much so that any one of them is likely to pay back the cost of the entire program.
We can be efficient and keep doing a good volume of seed investments if we stick to certain guidelines, principles, and processes.
We like co-investing with seed funds and angels because: we get more money at work on the idea; the entire responsibility for guiding and advising the company is not borne by us; angels who are experts in that industry or subject matter play a crucial role; we can manage a larger number of smaller seeds.
We have a bias towards technical founders.
- We've co-invested with angels, seed funds, or other venture firms
- We haven't insisted on board seats
- We haven't had a particular ownership target
- We haven't insisted on being the largest investor in the deal at seed stage
- We've done priced rounds
- We've done convertible notes (but with valuation caps)
- We've used seeds to test ideas and start conversations and relationships with entrepreneurs