The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: The Three Types of Seed Round Today, Why Seed Has Never Been More Competitive, Why Pricing Has Never Been Higher, Why Boards at Pre-Seed Can Be Helpful & How Too Much Cash Too Soon Can Harm Companies with Ed Sim, Founder @ Boldstart
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Oct 27, 2023 
Ed Sim, Founder and Managing Partner at Boldstart Ventures, dives into the competitive seed funding landscape, identifying three distinct types of seed rounds. He argues that too much early capital can hinder startups, urging founders to be cautious of high valuation offers. Sim also disagrees with the notion that growth is dead, outlining evolving expectations from multi-stage funds. Lastly, he discusses the future of IPOs, the AI investment craze, and the importance of strategic decision-making in a rapidly changing market.
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Seed Round Categories
- Ed Sim categorizes seed rounds into three types: discovery (under $2M), classic ($3-5M), and Megatron Jumbo ($6-10M).
- These reflect different stages and founder experience levels.
Multi-Stage Firms in Seed
- Multi-stage firms entering seed rounds are driven by the need to deploy capital and secure early positions in potential winners.
- They aim to replicate early successes like Instacart's IPO, where early investors benefited significantly.
Early-Stage Funding Strategy
- Avoid raising too much capital early on, as it can hinder innovation and create pressure for rapid, unsustainable growth.
- Focus on finding the right partners and a fair price, rather than maximizing valuation.