Disrupting disruption with disruptive disruptions since 2010.
The first real money a startup receives from external investors, typically ranging from $500K to $2M, given in exchange for equity to entrepreneurs brave (or delusional) enough to think their idea will change the world. This is the stage where your pitch deck matters more than your product, and your co-founder's LinkedIn connections matter more than your revenue. Named 'seed' because most of these investments will never grow into anything, much like actual seeds.
The second institutional round where your company proves Series A wasn't a fluke—investors pony up $15M-$50M hoping you've figured out unit economics.
Informal promises of future equity that aren't documented in legal agreements, often made to early advisors or contributors. A lawsuit waiting to happen, wrapped in a handshake.
The exhausting process of pitching multiple venture capital firms on Sand Hill Road in Menlo Park, often receiving similar feedback and soft rejections. It's speed dating for capital, and you're getting ghosted.
An investment strategy of making many small bets across countless startups, hoping a few will hit big enough to compensate for the inevitable carnage. The venture capital equivalent of buying lottery tickets in bulk.
Serviceable Addressable Market—the portion of TAM you can realistically reach with your business model and resources; basically TAM divided by reality.
The attempt to prove you weren't just lucky with Series A and that your unit economics actually work at scale.
A go-to-market strategy dependent on human sales teams to drive customer acquisition, typical in complex B2B products with long sales cycles. The opposite of letting the product sell itself.
The right to invest more than your proportional share in a subsequent round, allowing early investors to increase their ownership. Pro rata's aggressive older sibling who always wants more.
Restructuring that gives early investors and employees liquidity without selling the company, like a pressure release valve for cap table tension. An exit without the exit.
The portion of TAM you can actually reach with your sales and marketing strategy—much smaller than TAM but still wildly optimistic.
A fledgling company designed for rapid growth and scale, typically fueled by venture capital, caffeine, and the unwavering belief that this time will be different. These entrepreneurial ventures aim to disrupt industries, change the world, and achieve unicorn status—though most will pivot three times and run out of runway first. It's where innovation meets delusion in the most optimistic way possible.
A marketplace where shareholders can sell their existing equity to other investors, providing liquidity before an IPO or acquisition. It's the emergency exit when waiting for an actual exit feels like waiting for Godot.
A Stripe-era instrument designed to be even simpler than convertible notes—basically a promise to give equity someday, maybe.
Having personal capital at risk in an investment or venture, theoretically aligning interests between founders and investors. It's the 'put your money where your mouth is' principle, except everyone's mouth is usually writing checks their bank account can't cash.
A strategy where investors make many small bets, then heavily support only the winners in subsequent rounds. The venture capital version of throwing spaghetti at the wall, then only cooking the pieces that stuck.
Stock-like compensation arrangements that mimic equity ownership without actually granting shares, often used to avoid dilution or regulatory complications. All the incentive alignment with bonus legal complexity.
Simple Agreement for Future Tokens—a legal instrument for investing in future cryptocurrency tokens, for when you want equity but make it crypto.
An independent appraisal of your private company's value for tax purposes—made by third parties specifically so the IRS can't argue your strike price was fraudulently low.
Sequential funding rounds labeled alphabetically, each supposedly representing the company's progression from barely-viable to 'we probably need more money anyway.'
Later-stage funding rounds (C, D, E, F, etc.) for companies approaching profitability or dramatic growth. The venture capital equivalent of 'we've lost count.'
The realistic revenue you can capture in the next 5-10 years—the number that makes your board members slightly less nervous than TAM.
The price per share at which employees can exercise their stock options. Set artificially low so they can actually afford to buy their equity on the off chance it's worth something.
A startup that's past the early stage and trying to grow as fast as possible. It's the phase where you hire thousands of people who aren't sure what the product is.