Source: 42Floors blog, Apr 2012
The feeling was palpable. Y Combinator had sixty-five companies present (42Floors was one of them). And we saw 500 eager investors, frenzied almost, excited to invest in entrepreneurs. One investor emailed me four times, texted me three times, called me and sent me a message on LinkedIn — desperate to get a check in before the round closes.
No business plans, not even pitch decks this time. One 2-1/2 minute pitch and a quick follow up meeting. Seven figure seed rounds that can be closed within days and oversubscribed 2x to 3x. Founders with no experience fundraising and no pre-existing networks, making connections with top tier guys. It was really a sight to see.
It’s easy to lose perspective. It’s weird to see entrepreneurs compare convertible note caps of 7, 8, 10 million dollars from this lens of low, medium and high. I see those numbers and I just can’t believe that any seed company is receiving a 7 million dollar cap. None of us could get over 3 in 2009.