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by vanattab 1461 days ago
2. You should also be raising seed money from angels that are executives/fellow founders at your early customers / pilot partners. Ideally you fill a $2M seed round with ten $50-100K checks from these people and a great seed fund that will be value add-oriented.

Wait is it normal for an executive of a company to invest in companies that thier company is paying for services. That seems like there could be a lot of conflict of interest.

1 comments

Often at this level a corporate client is already serving as a backer/incubator for a promising service. It might even be an investor or promising acquirer from day zero. B2B is weird like that, relationships are multi-pathed and could easily be adversarial and cooperative at the same time. Corporate execs investing in the startup is standard practice as a way of lending political support inside the larger org (and hopefully profiting of course).