Entrepreneur First had its 10th European demo day last month, welcoming in another 24 technology companies, this time including those formed through EF in both London and Berlin. We had 500 investors in the room, another 1000 on the livestream.
At EF we’re lucky enough to have done 100+ seed rounds alongside European and Asian VCs in the last few years, with the rate accelerating to more than 50 in last year alone.
I’ve seen most of these deals personally (particularly in Europe) and helped many of them across the line by working with most of the UK seed investment scene.
As our latest batch of companies start to receive term sheets, I thought I’d share of the seed round pricing traps we’ve seen and how to avoid them.
If you remember only one thing from this post, please let it be:
Choose the best investor for your company, negotiate hard, but don’t pick based on the highest price!
Here’s a few reasons why the highest round can be a mistake: