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by JimEngland 4367 days ago
This is essentially a Series A, so why call it a "second seed round"? Feels questionable to me.
3 comments

No valuation, because of convertible debt

No board seats

Not a lot of money raised, so not as dilutive as typical Series A

No expectation to hit "Series B" type metrics next time they raise

Danielle explains this clearly in the article. Mattermark "couldn’t raise a traditional Series A on acceptable terms."

"I quickly discovered expectations for a B2B Series A were $1.5M in annual revenue run rate — we were growing fast, but still only 1/3 of the way there at the time."

They don't have enough revenue so they went for another seed round instead. It's not questionable; it's logical and helped her to keep the company moving forward.

It was raised with convertible debt, so no valuation was given. I think that makes it a seed round instead of a Series A.