Terrible is a strong word, but I don't think these terms are good for lots of companies. Each company is at a different stage when they first start raising seed funding. Some companies might just be worth 1 MM, but if you have a strong team, great technology, a workable plan, and early customer interest/revenue 1 MM is a horrible deal. In my opinion these terms are great for some ventures and absolutely horrible for others. I think the quick decisions are great, but I would think it would be more fair and equitable for you not to box the valuations. Perhaps offering a tiered option where higher value ventures take a little longer to evaluate, but I think boxing the valuation will have you miss the best companies. My two cents anyhow.
I think it's best for super early stage ventures. If you're much further along, it's going to be a bad deal and possibly deter any future investment in your company due to the dead money (lack of follow-on).
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Terrible is a strong word, but I don't think these terms are good for lots of companies. Each company is at a different stage when they first start raising seed funding. Some companies might just be worth 1 MM, but if you have a strong team, great technology, a workable plan, and early customer interest/revenue 1 MM is a horrible deal. In my opinion these terms are great for some ventures and absolutely horrible for others. I think the quick decisions are great, but I would think it would be more fair and equitable for you not to box the valuations. Perhaps offering a tiered option where higher value ventures take a little longer to evaluate, but I think boxing the valuation will have you miss the best companies. My two cents anyhow.
Agree with you that for it's not for everyone but for most early stage startups, it's a great deal.
For the others, Kima Ventures still exists and we are investing at differents valuations (lower and higher)
I think it's best for super early stage ventures. If you're much further along, it's going to be a bad deal and possibly deter any future investment in your company due to the dead money (lack of follow-on).