Is Early Stage Investing Binary?

I am attending the 9th Spartina Summit, which is a two day off-site hosted by David Hehman and Howard Love, two brilliant entrepreneurs and angel investors with whom I have had the privilege of counseling and co-investing over the past 16 years. Founders of their portfolio companies and an assortment of angels are attending.  We had a fantastic discussion today about seed investing.  The topic – how much do terms matter?   My take:  the vast majority of returns on a reasonable portfolio of seed investments are driven by a subset of “breakout” companies.  The rest rarely move the needle.  Pick well – that is the priority.  Terms should be sane, but are much less important.  Thoughts?

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