What this teaches
Wilson's short, sharp definition: seed money is for building product and finding product-market fit, nothing else, and rounds sized or spent otherwise create broken cap tables and stranded companies.
Why it matters
A widely-cited corrective to seed-round scope creep, from one of the most-read VC bloggers ever.
Key lessons
- Seed capital funds the search for product-market fit, not scaling
- Raising a big seed to skip the milestone doesn't skip the milestone
- Round size should map to the next proof point, not maximum dilution tolerance
Union Square Ventures
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