The Equation Series
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Part III: Stages and Sectors

Chapter 12

Pre-Seed, Seed, and Angel Investing

The earliest money in a start-up is invested before real data exist. Angels, accelerators, pre-seed funds, and seed funds underwrite a team, an insight, and a market, using instruments designed to postpone the valuation argument. Here the power law is most extreme: most cheques go to zero, and one position can return a seed fund several times.

The preview ends here. The full chapter is in the book.

In this chapter

  1. 12.1Stages defined by what is being proven
  2. 12.2Players and rounds
  3. 12.3Underwriting with no data