Wednesday, October 26, 2011
(Founder Stories) Baseline?s Steve Anderson: ?The Signaling Issue Is Real?
When startups are choosing investors for their seed round, it is important to pick ones who will stick around for the long run. Otherwise, they may run into what Founder Collective co-founder Chris Dixon calls "signaling risk." �The risk of getting a high-profile investor in your seed round is that they might not follow on in later rounds, and that sends a signal to other investors that there might be something wrong with the company. Dixon discusses signaling risk in this episode of Founder Stories with Steve Anderson of Baseline Ventures.
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