Plant fewer seeds

The life-cycle of a startup has never been more complex. Where previously ambitious twenty-somethings would bootstrap their way to legitimacy, new businesses now have a fundraising maze to navigate, from angel investments and seed money, to rounds one through “n” to IPO.

The poster-child for this changing landscape is the seed round, which has grown significantly in size and popularity:

Peeling back Silicon Valley tech deal activity since 2009 reveals that seed investments have seen a massive increase over time. In fact, seed deal share in Silicon Valley has jumped from 7% in 2009 to 29% in 2013 year-to-date – CB Insights

Presented by this new and in-vogue opportunity to take on capital, it is hard for businesses to know quite what to do, and in particular when to say no. When would you ever turn down a big fat cheque?

The answer is clear, in the eyes of this seasoned venture capitalist – small businesses need to spend less money on seeds and focus more on their core business.

Since when did so many startups have a side-interest in horticulture? I am as green-fingered as the next man, but I don’t necessarily see the benefit of raising a fund to keep you well-stocked with sunflower seeds, however good they are for your cholesterol. And don’t even talk to me about your home grown kale, as I almost certainly don’t want to hear it.

Now that is not to say that your home-grown green beans aren’t delicious, and your pumpkins do look fantastic, just in time for Halloween. But as much as I appreciate the desire for vertical integration, there is no need to plant your own. Weed out the seed rounds, and watch your business grow.

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