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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. What is the Evaluation of the Funding?

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How Investors Think About Valuation of Pre-Revenue Startups

SoCal CTO

They might have some seed money and are thinking or raising a Series A based on success of an early release (MVP). Because of this, I've always tried to stay up-to-speed on how early-stage investors look at valuation of companies. Bill Payne is an expert on how early-stage investors should look at valuation. Not sure why.

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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. Don’t talk yourself into a high valuation for the first round of financing for any reason…. Every contact should be a learning experience.

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Instead of sticking a fork in the venture market, realize. there is no fork

This is going to be BIG.

How else can you explain this headline matching a story about a professional social network still trying to explore revenues raising $17mm on an $80mm valuation? The reality is that, most of the time--like two thirds of the time--the venture market is totally open for good businesses to get fair valuations in reasonable turnaround times.

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Series Seed or Convertible Note? Which one is more founder friendly? Which one do investors prefer?

Gust

That said, the primary entrepreneur-friendly reason for doing a Convertible Note (and the reason that no serious investor under regular circumstances will therefore do an uncapped note) is: The valuation negotiation is put off until the next round. million valuation provided by the 20% discount of the note.

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How the Seed-Stage VC Trend Began, The Downsides of Unicorns & Much More

Both Sides of the Table

I was out to raise my first seed money in my second startup of $500,000. We went through the history of Fab, where Jeff was an early investor, and discussed many of the challenges they faced specifically by having too much money. It is, of course, a very recent phenomenon.

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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. Don’t talk yourself into a high valuation for the first round of financing for any reason , even if your hair is on fire and the idea is worth billions.