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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.

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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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The Legal Side of Entrepreneurship

YoungUpstarts

Startups need to understand how to manage the seed money they receive from investors and VCs. They also need to decide whether to structure terms as an equity deal or a convertible security deal. Lawyers should use standard forms, and investors should cap their lawyer fees at $7,500-10,000 for a seed round of this size.

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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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4 Best Websites To Apply For Accelerators And Incubators

YoungUpstarts

Accelerators are mainly focused on helping companies achieve business growth in a short period of time, typically a few months, hence the term “accelerator” They support young companies by providing mentorship and seed money. It lasts longer than an accelerator, usually 6 months to a year.

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The best advice startups will never follow

Berkonomics

There’s a common expectation among entrepreneurs that seed money from family is great – letting close relatives in at the ground floor. Do take loans from sophisticated investors only after you have tried everything to get them to purchase equity…. The problem, of course, comes if the business fails.

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