Venture capital · Fundraising

Is Buffer's fundraising process the new model?

Anonymous

November 2nd, 2014

Or is it just a PR anomaly? In case you haven’t seen it, Buffer app not only announced they were raising $3.5M at $60M valuation they made public their docs and metrics; admitted it was for founder and employee liquidity (more so than investing in the biz) and also is doing an open solicitation. Do you think this is a new model that others will follow or more of PR hack - by a company that has been good at that sofa

Also, how do people feel about it being for employee and founder liquidity?

More than 65% of new companies fail because they lack funding. In this course, you’ll learn common fundraising mistakes, how to nail an elevator pitch, how to craft a killer pitch deck, where to source investments from, and all about term sheets and convertible notes.

Michael Brill Technology startup exec focused on AI-driven products

November 2nd, 2014

First of all, you can't help but have tremendous respect for the experiment. It's awesome... when you're doing well in a bubbly tech economy. When you hit a bump, do a down round, etc. then performance transparency can scare away customers, investors and employees. Things like open salaries are probably fine in any economic/competitive environment though.

No matter what your philosophical bent, your role as a fiduciary would require you to back away from certain reporting. Could you do that in a way that doesn't create panic? Probably. But you'd have to do it.

So as long as Buffer rocks it, it's great! 




Tom Maiaroto Full Stack Consultant

November 2nd, 2014

I like that everything is open. It's going to be really interesting to see how it all pans out.