7 Seed-Stage Funding Sources To Finance Your Startup

Startup Professionals Musings

I challenge any entrepreneur, for example, to define the difference between "seed-stage" and "early-stage" financing. Asking for early-stage money before you have customers and revenue will likely kill your credibility with real investors.

New Early Stage Financing Options for Entrepreneurs

Startup Professionals Musings

If you are new to the entrepreneurial world of startups, you are likely confused by the terminology of seed-stage, lean startups, micro-VCs, and Super Angels. The good news is that he is all about helping early-stage startups. Series-seed round. Early-stage startup.

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Value Inflection Points for Seed-Stage Startups

View from Seed

An easy way to think about it is that value over time doesn’t go up and to the right in a straight line like this: Instead, it’s more of a stair step like this: So, what are the value inflection points that create the stair steps, and how does one think about it at the earliest stages?

Hacking Angel List | VentureArchetypes Blog: Seed Stage Capital

Seed Stage Capital

In case you’ve been adrift at sea for the past 9 months and have no idea what I’m talking about, AngelList is a hugely-successful online service that matches early stage companies with angel investors. It is never to early to start a profile.

Geekdom Fund Raises $20 Million for Seed Stage Tech Investments

SiliconHills

Previously, the Geekdom Fund raised nearly $3 million to invest in early stage tech startups. based startup creating robots for commercial […] The post Geekdom Fund Raises $20 Million for Seed Stage Tech Investments appeared first on SiliconHills. The Geekdom Fund, based in San Antonio, announced this week it has closed on a $20 million fund, its largest fund to date. Since then, the fund has invested in Chowbotics, a Redwood City, Calif.-based

Introducing the New-Look NextView + Seed-Stage Startup Platform

View from Seed

We asked ourselves, “How do we offer something that founders want, and in fact, something that we’d want ourselves if we were raising our first round of seed funding?” We are quite simply high conviction, hands-on seed investors. Every company matters deeply to us – it’s not “just a seed.”. We take board seats and want to stand shoulder-to-shoulder with founders at the seed stage to try to make the biggest possible impact. – We are seed investors.

Startup PR: A Journalist’s Advice for Seed-Stage Companies Seeking Press Coverage

View from Seed

Editor’s note: Unlike the Ubers and Airbnbs of the tech startup world, seed-stage companies don’t typically have the valuations, awareness, or traction typically associated with press coverage.

Should Seed-Stage VCs Pay Up for Great Teams or Great Traction?

View from Seed

“As a seed-stage investor, should you pay up for team or traction?” When you are thinking about joining an early stage company, how should you be evaluating the risk of the overall company? appeared first on The View From Seed

Accidental VC: How Much Does Design Matter for Seed-Stage Startups?

View from Seed

” So it’s no wonder that one aspect of an early-stage startup’s existence can be perpetually up for debate: their graphic design. To focus on hiring briefly: Seed-stage startups lack early traction but make up for it with tons of promise.

Early Stage Marketplace Investing

Dshen

One of our Launch Capital staff, Ed Coady, pinged me the other day regarding marketplaces and asked me how does one find the next big marketplace startup at the seed stage. In stark contrast, there are practically no posts written on how to evaluate and pick the next big marketplace at early stage when there is no traction. Lack of speed is death to the early stage startup!

Competition and Leadership in Seed Stage Investing

Rob Go

Seed stage investing has developed significantly over the past 7 years that I’ve been in VC. It’d pretty standard for entrepreneurs to contemplate raising an “institutional seed round” prior to approaching VC’s for series A rounds. Many have said that the institutional seed is the new series A. This is rational because seed investing makes sense for companies that can have capital efficient beginnings. Early.

Unusual Rounds of Early-Stage Funding & What to Know

Genuine VC

This is an excerpt from the original post, found on NextView’s blog, The View From Seed , launched this week. As the VC seed market has institutionalized, especially over the past five years, there has emerged a prototypical seed round profile: $1M-$1.5M The standard seed round will buy the company 12 to 18 months of runway as it looks to prove out early-stage milestones to raise a Series A before running out of cash.

Answers to 10 Critical Questions for Seed-Stage Startups [SlideShare]

View from Seed

In the last six months, we’ve been asked and answered several key questions about seed-stage startups and raising seed capital. So The View From Seed is not for broad, sweeping statements, theoretical ideas, or debating IPO-ready companies.

Why Reporters Ignore Your Seed-Stage Startup Pitches, And How to Fix That

View from Seed

This is for the early-stage companies — the entrepreneurs with great ideas and tireless work ethics who feel like they’ve emailed half of the country’s news outlets with nothing but the rare “thanks, but not interested” reply to show for it. This one is tricker in the pre-revenue stage.

Seed Stage VCs Compete With One Another But Not How You Imagine

Hunter Walker

Folks who aren’t in the trenches of early stage investing often assume that this sheer volume makes “competition” my #1 worry. In my worldview there are ~10 seed funds that focus exclusively on this stage of company, in areas we’re interested in and also credibly seek to lead rounds. Many seed deals have two leads, which means we are collaborating with them as often as we’re competing. Seed stage is cordial and relationship driven.

The Changing Attitude Towards Boards at Seed Stage Startups

Hunter Walker

I was excited to recently see YC President Sam Altman evangelize for adding an investor or outside Director to a seed stage startup. At Homebrew we agree 100% , even in the face of some investors and founders being suspicious of board involvement early in a company’s existence. With larger seed financings these days, your next investors are expecting more polished companies come A Round.

How long will the “seed stage bubble” last?

andrewchen.co

How long will the “seed stage bubble” last? It’s never been easier to raise seed funding, and there’s warnings that we’re in the midst of a “seed stage bubble.” @andrewchen. Read what Im reading · Featured essays.

Goodbye Party Round, Hello Piggy Round: Should Seed Stage Founders Raise From Just a Single Investor?

Hunter Walker

It was easier to just discuss privately with other investors, but Jason Calacanis tweeted this morning about VCs trying to take entire seed rounds , and so, here it goes. Anecdotally, over the last 3-6 months we’re definitely seeing more examples of larger early stage or multistage funds offer to do 80-100% of a company’s seed round. In order to go after them, they need to head earlier into seed.

The Changing Exit Environment for Early Stage Companies

Angel Investing News

In the “good old days,” angels invested in seed-stage startups and teed up promising companies for subsequent venture capital financing. Larger VC rounds and the lack of early IPOs for exits have also resulted in substantially longer times to exits for venture capitalists. Then, plan an early M&A exit to a much larger player who is deliberating a “make versus buy” decision on your business proposition.

What Is a SAFE? A Closer Look at The Simple Agreement for Future Equity

Early Growth Financial Services

SAFEs usually appear around the seed stage of funding, as it gives founders the chance to raise funding without having to begin the process of setting a valuation or issuing convertible notes. Without the involvement of debt, there … Continue reading → Investment Capital: Equity / Debt / VC Funding Early Stages SAFE equity y combinator convertible debtConvertible debt is a staple in startup funding.

Seed stage investment bubble?

Don Dodge on The Next Big Thing

Is there a bubble in seed stage investing? Eye popping headlines, but the reality of seed stage investing is very different. Twitter, Facebook, and Groupon are not seed stage investments. Seed stage investing is down from previous years. Back in 2006 and 2007 Angel investments in early stage startups was around $26 Billion per year. Seed stage investment valuations have remained pretty stable for the past 10 years.

US, European and Asian entrepreneurs: SparkLabs launched a $30m seed-stage fund just for you

The Next Web

There aren’t a tonne of funds focused on seed-stage funding worldwide, but we can add a new one to the list today. SparkLabs , the company behind the accelerator program in Korea , is expanding its scope with its first seed-stage fund that will “help great startups go global.”.

Seed-Stage Startups: Beware the “Stickiness Squeeze”

View from Seed

Paying current rates is a lot easier to do on a $3 million seed round. It’s very different with a $1 million seed round. Believe me, I raised that $1 million seed round in 2009 and we never would have made it at these prices. These two costs suck up a lot of the money in an early stage company. The post Seed-Stage Startups: Beware the “Stickiness Squeeze” appeared first on NextView Ventures.

The Importance of Revenue is Back - DShen's Blogs

Dshen

Back in 2009, shortly after the 2008 crash, I wrote The Importance of Revenue at Early Stage, Now More Than Ever. 2.Valuations for startups still hang around $6-10M cap or pre-money at early stage for the hotter deals, sometimes even higher. However, practically NO startup I know raises for 24-30 months at the seed stage - well, practically none. at seed, what then? at seed, what then? The Web and the World of Business.

First Half of 2011 Showed Boost in Later Stage VC Deals in Israel

VC Cafe

Mid stage companies accounted for the highest rate of investments in Q2 2011, attracting 44% of all capital invested and later stage followed, with 27%. Seed stage investments are down almost by half, accounting for 3% of investments in the first half of 2011, compared to 5% last year.

What Early-Stage Investors Hate The Most

Mark Birch

Coupled with an founder not doing research on the focus of the investor’s investments are the thing(s) that early-stage investors hate the most. startups angel investors investing seed stage founders entrepreneurs prototype minimally viable product background research tech

What Are Pre-Seed Rounds and Why Do They Exist?

View from Seed

This is the first of several blog posts discussing pre-seed rounds. In this post, I want to answer the question, “What are pre-seed rounds?” In the next post, I’ll talk about how we think about pre-seeds at NextView. What Caused the Rise in Pre-Seed Rounds?

Some Thoughts On Seed Investing

A VC : Venture Capital and Technology

We have made six investments in it so far and five of them are seed investments. But it is a bit of a return to form for USV as half of the initial investments in our first fund (USV 2004) were made at the seed stage. In our core early stage funds (as opposed to our Opportunity Funds), we make initial investments at the seed, Series A, and Series B stages. So that explains the move to seed as our primary entry point last year.

How valuations are really determined at the seed stage?

Hippoland

Valuation is a nebulous topic amongst early stage startups, so I thought I’d really spell it out in detail. In short: Valuations for seed stage companies are fairly arbitrary and driven solely by supply and demand. I know an investor who got into Instagram’s early seed round at this time at $2m valuation, and this was considered to be a high valuation for that time period.

Early stage technology investing - analysis

VentureWoods

Interesting discussion here on issues around early stage technology investing in India. Earlier this year, we analyzed the investments made by 11 early/growth funds in India (across 144 companies and 156 rounds of investment) to understand how those companies were doing - clearly a qualitative exercise with subjective judgment around what is headed north versus south. The success rate on pre-revenue early stage investments (call them seed) seems very low, in the 15-25% zone.

Say Hello to the New Way of Raising Money

UC Berkeley

by Morten Lund, repeat entrepreneur based in Denmark, the chairman of LundXO and Tradeshift, and a prolific seed-stage investor. I hear about one of the exciting new ways of raising early stage investment dollars: Kickstarter, AngelList, Y-Combinator, and the list goes on. The Internet has become an integral part of the fundraising process, especially for early-stage entrepreneurs.

Flowchart: How a Seed VC Makes Investment Decisions

View from Seed

At NextView, we hold regular team offsites to step back and think about how we do everything from invest in seed-stage companies to create better platform initiatives in support of the Boston and New York startup ecosystems.

Fearless (Baseless) Predictions for 2014

Mucker Lab

Huge funding gap appears for seed stage companies as seed stage VC firms look for series A traction and accelerators look for seed stage traction. Market.

How Can This Be A Billion Dollar Company?

Feld Thoughts

I wish he had called it “This Unicorn Thing Is B t For Early Stage Investing” but I think he’s a little more restrained than I am. My original title for this post was “How Can This Be A Billion Dollar Company and other b t VCs ask early stage companies.”

The State of Early Stage in March 2014

Dshen

They wanted me to talk to them about the state of startup investing, and I chose to present on the state of early stage investing, the area where I do most of my work. The presentation was not an upbeat one; I showed slides from many data sources stating that I believed there were some serious issues for seed investors to operate and profit from. The going rate for seed stage startups is generally $5-6M cap on a note, or pre-money, with jumps up to $8-12M.

When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

As the seed-stage startup fundraise process has received more transparency in recent years, ranging from published advice on how to raise seed capital to increased availability through AngelList, Funders Club, and various accelerator programs, I’ve noticed another trend emerging.

Announcing Techstars AngelList Funds for Mentors and Alumni

Feld Thoughts

Today we’re happy to announce a new partnership with AngelList to offer Techstars mentors and alumni an exclusive opportunity to invest early in accelerator companies. The AngelList funds will give mentors and alumni early investment access while providing companies with additional early stage capital. AngelList syndicates helps enable seed stage investing at scale.

The necessity of early stage valuations

Tony Wright dot com

So, to bring the #s back to earth, let’s pretend that I have a seed stage idea with a little promise/traction that I’d like to raise $1m for. This market has VERY little to do with the current cash value/revenue of the company (at the early stage), but instead is based on the size of the market/opportunity, the entrepreneurs involved, growth patterns, long-term market trends, and how much competition there is for the deal.

Too Many Seed Investment Choices

Feld Thoughts

Yesterday I sent emails out passing on participating in two seed rounds for companies I really like. They had lots of investors trying to invest and each company was competitive with two other seed stage companies we’ve seen in the past 30 days. So far this year the number of high quality seed investments we are seeing in themes that are relevant to us is overwhelming. Finally, we believe strongly in active engagement as a seed investor.

Are True Early Stage Investors an Endangered Species?

VC Deal Lawyer

I think we can all agree that early stage investing has changed significantly over the past 10 years and I don’t see it reversing any time soon. And by “changed significantly&# I mean it is increasingly difficult to raise the $100K – $2M necessary to move from the pre-seed stage (where you likely raised $10-$100K from friends and family or your 401(k)) to raising institutional venture capital (~$2M +).