Growth October 17, 2020

Anyone have any stories of startups getting seed investment and succeeding with just that?

Eddie H. @eddieaich

Does anyone have any stories or examples of startups getting seed investment and succeeding with only that? Intentionally not going further in seeking investment beyond seed?

I've read a lot of horror stories about VC and am looking for great examples of companies who just needed a little bit of cash injection to get to the next level and beyond.

  1. 3

    Zapier and Wufoo are both good examples of hitting profitability early.

  2. 2

    TopTal is an interesting (and funny, or shady?) example that only raised a seed round and...

    Toptal, which is believed to be valued at more than $1B, is now 100% owned by Du Val, despite contracts that granted equity to early employees, including co-founder and former COO Breanden Beneschott.

    Beneschott, who was promised 17% of Toptal’s shares, says he was fired after demanding his equity.

    Andreessen Horowitz and others invested $1.5m in Toptal in 2012 in a stake that they expected to be around 15% of the company — but they, too, haven’t seen any cash.

    Source: https://thehustle.co/toptal-equity-convertible-note/

    1. 1

      Interesting indeed! Wow.

  3. 2

    A couple examples of companies that took money from Y Combinator but then never raised venture capital include Key Values and Workflowy. There are probably others.

  4. 2

    Tinyseed is trying to prove that model I believe.

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