5 ms·
This is essentially a Series A, so why call it a "second seed round"? Feels questionable to me.
by JimEngland 12y ago
This is essentially a Series A, so why call it a "second seed round"? Feels questionable to me.
- theflyingkiwi42 12y agoIt was raised with convertible debt, so no valuation was given. I think that makes it a seed round instead of a Series A.
- kloncks 12y agoNo valuation, because of convertible debt No board seats Not a lot of money raised, so not as dilutive as typical Series A No expectation to hit "Series B" type metrics next time they raise
- calvin 12y agoDanielle explains this clearly in the article. Mattermark "couldn’t raise a traditional Series A on acceptable terms." "I quickly discovered expectations for a B2B Series A were $1.5M in annual revenue run rate — we were growing fast, but still only 1/3 of the way there at the time." They don't have enough revenue so they went for another seed round instead. It's not questionable; it's logical and helped her to keep the company moving forward.