Wednesday, July 13, 2011

University Seed Funds: A Dichotomy of Terms


One of the first observations someone entering the realm of seed funding is a lack of consistent terminology in defining a very early stage investment.   Words like pre-seed, seed, and proof of concept are often bantered around in a seemingly interchangeable, and somewhat confusing fashion.  It is important to understand that differences in timing or company stage can dramatically affect the amount of perceived risk that exists and the corresponding investment terms associated with a particular investment.