Seed funding in NY

Just read this note from Hank Williams where he reports the creation of a fund called nycseed and dedicated to seeding New-Yor tech entrepreneurs.

NYCSeed is literally for two guys in a garage. The requirements are two techies that live in New York City, and a compelling idea. The terms are fairly simple: a convertible note for $200,000 that ultimately gives them around 10% of the company. The note converts to equity when the next round closes.

I really find this idea brilliant, as some proof of concept phase *are* costly – that is when you’re going on hardware or highly technical grounds that require some heavy investments to be able to show decent prototype. Hope old Europe can come up with something similar some time soon, I’ve seen so many brilliant ideas wasted by entrepreneurs-to-be that got drawn away from their project due to bad seed practices ranging from business angles taking 50% of stake for 50k€ to VCs not really shaped to manage this kind of mini-deals.
I’m really looking forward to see their first deals and I hope they can demonstrate that seed funding makes sense (I guess it makes even more sense if you can keep on investing in the following rounds somehow…).