Interesting Sifted article from Ada Ventures and Seedcamp on some of the risks of taking seed money from VCs at frothy valuations well before Series A, as is becoming more prevalent these days.
Contains a useful checklist for founders in this position.
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As with a duck being prepared for market, being foie gras’d with capital is not necessarily a good thing. Founders should be wary of the long term consequences of raising more money at higher prices before they’ve reached the milestones that would typically warrant those valuations.
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