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Co-Founder and CEO of EchoSign from inception through tens of millions in cash-flow positive SaaS revenue and acquisition by Adobe Systems Inc. Jason then served as Vice President, Web Services at Adobe, where EchoSign was named the most successful acquisition of 2011-12, posting 199% YoY growth.

One response to “Small Checks From Large Venture Funds: Maybe One is Enough”

  1. Heiko Korndorf

    I just had to smile when I read your blog post: I have just finished the first three seasons of the TV series “Silicon Valley” and it seems to me that the premise of this post is strongly connected to a central plot device in the show: a VC invests only a tiny amount of money for a small share of the company but – through a series of events – ends up with control of the board.

    I might be stating the obvious here but that seems to be a perfectly rational investment strategy for early-stage, high-risk companies: invest small amounts of money into a large number of companies whilst trying to gain the maximum degree of control/influence. And your post nicely highlights a subsequent aspect: the option of the original investor not to further fund the company.

    Until now I had naively thought of venture capital as equity investments but this is likely to be more applicable to later-stage companies with a solid track record. For early-stage, high-risk companies the value of the implicit options are probably much bigger than the actual equity stake.

    I guess that this is anyway how VCs analyze these deals but to me it seems to be a surprisingly new perspective.