In The Flash this week, we flag interesting insight by First Round Capital about the unprecedented ease with which startups are currently getting seed capital amidst a static number of Series A deals. The effect? Many more early-stage companies are now competing for Series A money than there used to be – requiring early-stage startups to amass significantly more proof-points around their business than they previously had to. We also look at a new challenge encountered for the first time by many entrepreneurs: regulation. There’s also a peek at how Silicon Valley insiders are taking advantage of soaring values for tech startups by creating a potentially lucrative side business – through “direct stake” funds. And more!
- In the current funding environment it has never been easier for startups to get seed capital, but the number of Series A deals is static. Thus many more early-stage companies are competing for Series A money…which means early-stage startups have to amass more proof-points around their business. (The First Round)
- Entrepreneurs continue disrupting new and uncharted industries, and are now encountering a previously unseen challenge: regulation. (Forbes)
- Venture-capital firms such as Andreessen Horowitz are taking advantage of soaring tech startup values by creating impromptu funds that take a direct stake in a single startup. (Wall Street Journal)
- The launch of a startup crowdfunding site by Alibaba rival JD.com suggests a surge in activity in the Pacific Rim, but challenges remain. (TechCrunch)
- A look at the viability of real estate entrepreneurship in Manhattan and whether there is a model for long-term success. (The New York Times)
- Gimmick? Or startup market reflection? The “Simple Agreement for Future Equity” is the newest startup investment tool. (Wall Street Journal)