Get Seed Funding Todayposted by MR WAVETHEORY at 11/01/2006 01:25:00 PM
I commend Charles River Ventures for stepping into the seed funding market with full force because it really separates them from the rest of the VC crowd. In recent years, most VCs have stepped away from seed funding especially after the dotcom bust. Most VCs today want to see not only an idea, a business plan, but also revenues in the millions. Can you call that venture capital? No. That's not what venture capital is about. That is private equit. What I like about the QuickStart idea is that Charles River is being a real VC once again. Venture capital is about backing innovation and breakthrough and there is nothing better than to seed lots of companies. They're the real deal.
The deal structure is that the $250,000 is a convertible loan - also known as a bridge loan. If the company takes off, the $250,000 converts into equity at the price of the Series A. That is a great way to gain a foot in the door for CRV and also a good deal for entrepreneurs who want to get to know the VC. Talk to them.