Many things about startups are about power laws — fundraising included. The best companies do attract disproportionate attention and the entrepreneurs are faced with the choice, if not pressure, of raising more. Below are five key principles on how to make the best decision.

1) Dilution Vs Runway — This is the heart of the dilemma since entrepreneurs naturally don’t want more dilution but also seek enough of a runway. One standard solution is to change the deal terms, typically by having a higher cap / valuation, to keep an acceptable dilution. The principal tension here is many investors have…

Long sales cycle? Marketing got too expensive? Spent too much time fixing the product?

There are so many reasons why things can take much longer than planned. In fact, our experience at Tau is that the vast majority of startups, including the very successful ones, do face a significant challenge at some point which made their fundraising tough. Below are five practical tips to still pull off a successful round.

1) Types Of Investors — Investors come in many sizes and flavors. If you are being unable to get a top institutional VC to lead then go for co-leads. Maybe…

Previous articles have talked about party rounds and keeping momentum in your fundraising. This one will focus specifically on the close, which ideally is a foregone conclusion but sometimes becomes the period of highest stress in a fundraise.

1) The Legal Diligence — Have A Budget

Legal diligence is not just a way for lawyers to make money, it’s fundamentally necessary to ensure the company is in good standing in terms of structure and contracts, avoiding many future problems. The norm is for the lead investor to do a legal diligence paid by the company and all other investors take…

If images speak a thousand words the following ones will illustrate the point resoundly.

A) We spend more in healthcare as a % of our GDP than other comparable countries:

The term pre seed has really become institutionalized in the last couple years, before that the idea / powerpoint stage wasn’t called by any other specific name. Let’s delve into definitions before

1) Definitions — There is no body or organization deciding what exactly is a seed or series A, it’s more about norms that do vary based on verticals or geography. Also, the terms are not about the amount raised or valuation, it’s about what you use the money for. At Tau I have seen a seed of $5M, a series A of $5M, and a series B of…

Excited to announce our investment alongside Quiet Capital, Mucker Capital, Fika Ventures, Global Founders Capital, SaaS Ventures and Founders First in the $3.8M seed round of HeyRenee — your personal care concierge. HeyRenee is a first-ever digital healthcare assistant focused especially on the elderly, especially those with multiple chronic diseases. Tau Ventures is an AI-first fund in Silicon Valley investing primarily in seed but we occasionally take earlier or later bets when we see immense promise. …

Society often celebrates the inventor, the lone genius or small group of people who comes up with a new insight. We heap praise upon the innovators, those who take the inventions and make them commercially successful. The ones that often do not get as much positive attention are those who keep the core of an idea but tweak it to a new reality, adding a new flavor to it. If imitation is the sincerest form of flattery then understanding the different shapes this takes is important for any entrepreneur, whether you are focused on flattering or being flattered.

1) Localization

Excited to announce our seed investment in, which calculates an immune fingerprint for each person. Tau Ventures is an AI-first fund in Silicon Valley investing primarily in mature seed, typically when there is a pipeline of customers, but we occasionally take earlier or later bets when we see immense promise. Teiko falls on that first exception, having been just founded at the end of 2020, but impressing us with (1) addressing a strong need, (2) building an execution-focused team, and (3) creating a differentiated product.

1) The Need

Helping design more immune-specific clinical trials and therapies is in many…

The more you understand about your VCs the better decision you can make. Obviously there are diminishing returns on how much time you spent analyzing versus executing, but my experience as both an entrepreneur and now an investor is taking a few minutes to apply this practical guide below is absolutely worth it.

1) Naming — At the start of the modern VC industry in the 1950s, there were no VC-specific conventions around naming a firm. Many of the older VC firms pay homage to their founder partners (e.g., Kleiner Perkins) or to ideas around innovation (e.g., New Enterprise Associates)…

Amit Garg

Venture Capitalist; based in Silicon Valley since 1999

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