On a positive note, given a16z's feedback, I'm sure they can find another firm/partner that would be willing to back them at this stage. They are definitely in a hard position, though. Reading this I doubt I'd put money in as a consumer until they have the capital to execute. Sounds like they really need 3-5MM to hit their objectives even though they only say 1.2MM.
I've also seen a16z invest in far less (pitch decks and hand-wave demos). So my read on the feedback is they've made too much progress on one front (enough to show a16z that they're not a compelling seed investment) but not enough progress on the other front (enough to warrant a PMF A round). Doesn't seem like the most fun spot to be in, and I know how hard this part of the stretch is. Good luck!
We've tightened up the numbers a bit, but it's pretty close to a honest amount. 4m would put us well into profitable S1 production + enough runway to develop the next iteration territory.
I've also seen a16z invest in far less (pitch decks and hand-wave demos). So my read on the feedback is they've made too much progress on one front (enough to show a16z that they're not a compelling seed investment) but not enough progress on the other front (enough to warrant a PMF A round). Doesn't seem like a fun spot to be in.
That's how I feel as well, given feedback from other VCs we've applied at. Amplify told us roughly "too big for a seed, too small for a series A" after five meetings or so.
Bummer I missed the SAFE round. I would consider chipping in as an investor even though I wouldn't feel comfortable purchasing a preorder as a consumer. Wonder if you can structure your next round to include spots for people that missed the train...
Comments
On a positive note, given a16z's feedback, I'm sure they can find another firm/partner that would be willing to back them at this stage. They are definitely in a hard position, though. Reading this I doubt I'd put money in as a consumer until they have the capital to execute. Sounds like they really need 3-5MM to hit their objectives even though they only say 1.2MM.
I've also seen a16z invest in far less (pitch decks and hand-wave demos). So my read on the feedback is they've made too much progress on one front (enough to show a16z that they're not a compelling seed investment) but not enough progress on the other front (enough to warrant a PMF A round). Doesn't seem like the most fun spot to be in, and I know how hard this part of the stretch is. Good luck!
We've tightened up the numbers a bit, but it's pretty close to a honest amount. 4m would put us well into profitable S1 production + enough runway to develop the next iteration territory.
That's how I feel as well, given feedback from other VCs we've applied at. Amplify told us roughly "too big for a seed, too small for a series A" after five meetings or so.
Bummer I missed the SAFE round. I would consider chipping in as an investor even though I wouldn't feel comfortable purchasing a preorder as a consumer. Wonder if you can structure your next round to include spots for people that missed the train...
We're still accepting SAFEs. Contact georges@simulavr.com for details.