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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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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. I think my total legal bill for getting my seed round done for LaunchBit was something like < $3000. Flexibility With an equity round, there’s a specific amount of money you are raising.

Equity 48
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Don’t Forget Grants If You Need Early Seed Money

Startup Professionals Musings

In the US, many entrepreneurs see grants as “free money,” since they are not loans and don’t have to be repaid. A grant is not an equity investment, so the entrepreneur doesn’t have to give up a stake in the company either.

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Don’t Forget Grants If You Need Early Seed Money

Gust

In the US, many entrepreneurs see grants as “free money,” since they are not loans and don’t have to be repaid. A grant is not an equity investment, so the entrepreneur doesn’t have to give up a stake in the company either.

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Snaptrip case study – Solo founder hypothesis in action

The Equity Kicker

With no team and no technical expertise Matt was planning to find a team and build out some product before starting to raise some seed money. We help founders develop a deep understanding of the problem so that they don’t have to rely on gut alone. Our unique model allowed him to get started straight away.

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From Nothing To Something. How To Get There.

techcrunch.com

However, my two initial co-founders were not technical and couldn’t contribute significantly during the initial year plus of development. This resulted in a recapitilization of the equity away from 33% each (in my favor) and then the ultimate dismissal of one of the co-founders prior to the A-round.