Mike Maples, Floodgate
Origins - Inside Venture Capital, Hosted by a GP and an LP
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Seed Funding - How to Get Paid for the Risk You Take
A lot of seed managers I've learned are too reliant on anecdotal wisdom rather than having a theoretical basis. So if you invest before Benchmark and Sequoia and Excel and Graylock, in theory, you're paying less money per percentage that you own. You get pricing power because you're not competing with those firms because it's pre-product market fit. And so the first reason that you want to have a lot upfront is that's when you get a chance at ownership. The best use of your reserves is to exercise your pro-rata rights in those situations.
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