

Songkick (YC S07) raises $4m series A - jamescoops
http://uk.techcrunch.com/2008/12/18/songkick-raises-4m-million-series-a-from-index/

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wheels
Is there actually a technical distinction between a Series A and a seed round?
(I've always assumed it was just size and order of progression.) Their last
funding was already $1 million, so wouldn't this be more like a small Series
B?

~~~
mattmaroon
It's arbitrary. A lot of people call the first small equity round a Series AA.
My guess is that their first round was either a convertible or a Series AA
that was mislabeled as a Series A in Crunchbase. Or this one was a Series B
that was mislabed a Series A.

Either way, it doesn't really mean much. And "seed round" is more of a general
term. Your Series A could be your seed round. It doesn't have any specific
meaning, though in their case I'd assume they would consider the YC funds the
seed round.

~~~
uuilly
A series A means that you're issuing class A stock. An angel round means your
issuing a note that will eventually convert to class A stock, aka a
convertible note.

The threshold between an angel round and a series A is determined by your
articles of incorporation. It's usually between 2 and 5 million. Before your
series A you have no valuation b/c it would be a waste of money to determine
it. Once you have matured and you raise enough money to go past the 2 to 5
million "convertible threshold," you get a valuation and issue class A stock
to your investors and angels. Your angels convert from a convertible note to
class A stock at the pre-money valuation and they get to ride the "valuation
bump" the series A investors put in for free.

Ok, I reread this explanation and I hated it. This is how I actually
understand it:

// globals

double classAThreashold = callLaywers( "Halp!" );

double outstandingShares = callLawyers( "Oh noes!" );

double amountInvested = 0;

void enterNewInvestment( double newInvestment )

{

    
    
        if( newInvestment + amountInvested >= classAThreshold ) {
    
            double preMoneyValuation = getValuation();
    
            vector< double > percentagePerInvestor;
    
            for( int i = 0; i < angelInvestments.size(); ++i ) {
    
                // convertible notes convert here:
    
                percentagePerInvestor.push_back( angelInvestments[ i ] / preMoneyValuation );
    
           }
    
           percentagePerInvestor.push_back( newInvestment / preMoneyValuation );
    
           for( int i = 0; i < percentagePerInvestor.size(); ++i ) {
    
               cout << "Shares for investor # " << i << " " << percentagePerInvestor[ i ] * outstandingShares;
           
           }
           
           cout << "the company is now worth :"  << preMoneyValuation + newInvestment;
    
        } else {
    
           angelInvestments.push_back( newInvestment );
    
        }
    
        amountInvested += newInvestment;
    

}

This is how I understand the whole process. It took my lawyers a long time to
explain it all to me and I'm probably still screwing something up. Go easy on
C++ :)

[updated a few bug fixes]

~~~
rantfoil
I love the code explanation. _grin_

~~~
mattmaroon
It needs serious debugging.

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jamescoops
they are good citizens too - running hacker events from their office

~~~
axod
Agreed. The one I attended back in April was a great experience and really
useful.

Congrats on the funding :D

------
DaniFong
Congratulations are due for a company that helped tip me off to two rocking
nights!

~~~
ian
Glad to hear it!

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adamsmith
Congrats guys!

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fallentimes
Wow - congrats guys. And great press following that knock off site covered on
TC.

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RichardPrice
The Songkick team is awesome. Many congratulations.

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ian
Thanks very much guys for the kind words

