Fund: NYC Seed
Posted by Anonymous on 2009-10-07
I was reminded of NYC Seed from this post a entrepreneur they invested in whose company ran out of money wrote: http://www.thisisgoingtobebig.com/200...
NYC Seed says on their site they put in the first $200k with the "goal of launching an initial product". I met Owen Davis once, and he made it sound like they have a standard set of terms like Y Combinator. But in this case, the company Path 101 already raised $350k from a bunch of well known angels including Fred Wilson (http://path101.com/investors) well before NYC Seed put the money in. What consumer tech product can't be launched for $350k in today's market that can be launched for $550k?
Seemed like a bit of a conflict that Fred Wilson was a personal investor in Path 101's first round of angel capital, and NYC Seed (which Fred Wilson is on the board of http://www.nycseed.com/advisoryBoard....) bridged them after the angel money ran out without the angels reupping. Was city/university money (http://www.nycseed.com/about.html) used to protect the investment of prominent NYC angels?
I'm sure funds deviate from their investment charter all the time, but I don't know how I'd feel about this if I were a NYC tax payer. It would be good to know how much money one can raise and still get a bridge from NYC Seed. $500k? $1mm?
Aside from all that, would love to hear if people think it's worth applying to NYC Seed if you don't have one of its board members already invested in your company.PRIVATE: Members Only