Remove Cofounder Remove Equity Remove Seed Capital Remove Syndication
article thumbnail

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

The Startup Magazine

Seed capital is a component of the initial investments made in young businesses. Some return value must be offered to the investors for startup seed funding to be considered acceptable. This could be a proportion of the company’s equity or investment; in other instances, it could be a portion of its later-stage profits.

article thumbnail

The Silliness Of Recapping Seed Rounds

Feld Thoughts

A company raises $1m of seed money from angels in a convertible note with a $6m cap. Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. But in this cycle, I hadn’t seen it in a seed round.