By guest author Irina Patterson Eric: It is amazing how much investors can damage a company. And I think the first thing an investor needs to do is not damage a company. Investors to be really careful to help the management team stay focused, be responsive and helpful, but not be demanding in ways that
By guest author Irina Patterson Irina: Do you have any sector preference? Eric: We are seed-stage, software-enabled capital-efficient investors. So, within that there are a lot of things we can do, but our setup tends to lend itself to a lot of Internet investing. We can do other things, and we are doing other things.
By guest author Irina Patterson Irina: Do you have a number for what is a reasonable size? Eric: I think there is no set number. I need to believe that the entrepreneur can build a big company. It depends what you mean by niche. A $500 million–dollar market where there is no real competition and
By guest author Irina Patterson Irina: Do you think in terms of the valuation of the company? Eric: We have a zone of valuation we think is appropriate for our thesis of investment as seed investors. If a company reaches a point at which it feels it has accomplished far more than what we call
By guest author Irina Patterson Irina: How can entrepreneurs who are seeking funding reach you? Eric: I think you have heard this from a lot of people. It is not rocket science: Go on LinkedIn, figure out who knows us, and get them to vouch for you as somebody they know and respect. There are
By guest author Irina Patterson Eric: We view ourselves as unique for a handful of reasons. We have six out of eight entrepreneurs at the fund who actually run companies day to day. I think that is a really good model in terms of keeping us in our mindset as founders. When most of your
By guest authors Irina Patterson and Ravi Bulusu Irina: Do you have any interesting stories? Manu: Sure. I met one founder in December 2008. I had my second and third meetings with him in January. The company had not even have been formed yet. It was only a single person or, rather, the founding team
By guest author Irina Patterson This is the eighteenth interview in our series on financing for entrepreneurs. I am talking to Eric Paley, managing partner of Founders Collective, a $50 million fund dedicated to investing in seed-stage deals. The fund has offices in New York City and Cambridge, Massachusetts. Irina: Hi, Eric. Let’s start with