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Seed Stage Funding 101: What it Is & How it Works

The Startup Magazine

I will tell you brief details about seed stage funding, and deal sourcing on this page, so read the conclusion until the end. What exactly is the seed funding? The initial official fundraising round is called seed funding, and it comes immediately after the pre-seed investment stage.

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Early-Stage Startups Need Friends, Family, and Fools

Startup Professionals Musings

Since they don’t know you (yet), their first integrity check on you as a person is whether your friends and family believe in you strongly enough to give you seed money for your new idea. You see, investors invest in people, before they invest in ideas or products. If they won’t do it, they why would I as stranger invest in you?

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8 Key Actions for Entrepreneurs Needing Early Money

Startup Professionals Musings

Since they don’t know you (yet), their first integrity check on you as a person is whether your friends and family believe in you strongly enough to give you seed money for your new idea. You see, investors invest in people, before they invest in ideas or products. If they won’t do it, they why would I as stranger invest in you?

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Should you raise on convertible notes or do an equity round?

Hippoland

A reader named Turner Dean recently asked me whether it’s better to raise seed money on convertible notes or straight-up equity. You can start bringing money into your bank account right away and can start deploying it immediately. So early stage investors tend to be more wary of convertible notes / convertible securities.

Equity 48
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To Fundraise While You're Not Fundraising or to Not Fundraise While You're Not Fundraising? That is the Question.

This is going to be BIG.

First, in the early stages, there's a lot more information that can be gleaned about you than we can know for sure about the success of your company. You think you're getting this big fat check compared to the seed money you raised, but they're actually doing something more like dipping their toes in the water.

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VC Seed Funding is Dead, Long Live VC Seed Funding!

Both Sides of the Table

.&# And I think this line of thinking has started to become conventional wisdom as outlined in Chris Dixon’s excellent blog post saying that you need to be careful raising seed money from a large VC fund. I do think you need to be careful with funds that have done 20-30 seeds deals in fairly rapid succession.

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How to Fund a Startup

www.paulgraham.com

It wasnt because they werent accredited investors that I didntask my parents for seed money, though. When we were starting Viaweb,I didnt know about the concept of an accredited investor, anddidnt stop to think about the value of investors connections.The reason I didnt take money from my parents was that I didntwant them to lose it.