How Much Seed Capital Should You Actually Raise?

View from Seed

In a world of pre-seeds , seeds, seed extensions, super-seeds , and more, figuring out the right amount to raise for a startup’s seed round can seem like a moving target. But equally beneficial can be to keep other seed players warm who almost got there initially.

[Checklist for Entrepreneurs] Critical Tasks to Complete After Raising Seed Capital

View from Seed

Raising venture capital at any stage of company growth requires tremendous effort from entrepreneurs. That drive to focus on helping customers and growing their companies is even more commendable than the ability to raise capital.

3 Steps To Raise Seed Capital From Investors

YFS Magazine

Finance Grow investors money raising capital raising startup capital seed fundingThese three steps will help you start fundraising and act as an initial foundation.

These 3 Strategies Helped Us Raise $500,000 In 3 Weeks

YFS Magazine

Finance Grow fundraising money raising capital raising venture capital seed capitalWhen it comes to funding, there are plenty of ways to find money, but one must always be willing to work for it.

Finance Fridays: Getting Started – Allocating Equity and Founder’s Investment

Feld Thoughts

Finance Friday’s gets off the ground with today’s post by introducing you to an imaginary startup, the entrepreneurs that we’ll being following throughout the series, and their first challenges: splitting up the founders’ equity and addressing the case where one of the founders provides the initial seed capital for the business. Jane and Dick briefly considered a valuation based on the next external financing round, perhaps applying a discount.

Equity 297

Raising Startup Capital Through Convertible Debt Financing

Business Plan Blog

Raising Seed Capital. Most startup founders do not have enough capital to launch their companies and need to raise money at some point. Raising Angel Capital. Convertible Debt Financing. can be incorporated in the agreement at the time of financing.

Knowledge Is Power: Convertible Note Financing Terms, Part I

Gust

It should therefore come as no surprise that an asymmetry of information exists, mostly gleaned from experience, between founders and investors in a venture financing deal. For a traditional VC financing round structured as a sale of preferred stock, the best resources I can recommend are the Term Sheet Series by Brad Feld and Jason Mendelson and Startup Company Lawyer by Yokum Taku. Others have discussed in detail the pros and cons of convertible debt vs. seed equity rounds.

Knowledge Is Power: Convertible Note Financing Terms, Part II

Gust

Last week , we gave some attention to the “why” behind convertible note financing for early stage startups. As with so many subjects in law and finance, mastering the jargon is half the battle. This may seem like a no-brainer now that you understand the basic structure of a convertible debt financing. Amount of Financing : Up to $600,000 may be issued. In most cases, an early stage startup will raise seed capital from more than one investor.

Financial Challenges Most Young Entrepreneurs Face Now

The Startup Magazine

Lack Or Low Personal Capital. Entrepreneurs have to start with seed capital. Due to this, loan companies and credit card companies will often turn younger entrepreneurs down and will not offer financing. Finances are always necessary so you do not have to be afraid.

TechWildcatters Launches Dallas Microseed Fund

The Startup Lawyer

The selected startups will get up to $25,000 in seed funding, intensive top-notch mentorship, and the opportunity to pitch to angel investors, venture capitalists and corporate dev teams at their biannual “Demo Day”. Tags: Startup Lawyer dallas seed capital

Setting Up Your Accounting System

Feld Thoughts

When we were last with Dick and Jane on Finance Fridays, our fearless entrepreneurs were figuring out how to split up their founders equity and account for an investment from Jane. Anytime the financial model indicates that SayAhh will run out of cash, determine how you will raise capital to ensure liquidity and be sure to properly account for the debt or equity transaction on the balance sheet and Cap Table. Finance Fridays accounting system finance fridays

Nobody Announces Their Seed Round Anymore and That’s a Mistake

View from Seed

Five years ago, as the mania around seed fundings was accelerating, Founders were very eager to announce their seed round to the world. It seemed like every other TechCrunch post was announcing a startups’s new seed financing round.

Why Startups Face Increasing Competition In Raising Series As And Bs

Gust

To get some sense of the patterns, I analyzed 917 companies from seed through Series B over the past 14 years, using Crunchbase data. I’ve divided the companies into cohorts by the year they raised their seed investment. The chart shows the narrow funnel seed stage companies must pass through to raise a series A. First, the number of seed investments in the Crunchbase data has increased by 4x in 4 years. By Tomasz Tunguz , Partner at Redpoint Ventures.

Seed Stage Startups Are Now Graded on a Curve

View from Seed

Over the past five years, we’ve witnessed an Atomization of the Seed Stage. Early fundraising is no longer a one-and-done fundraise of a single round of Seed capital subsequently followed by a Series A 12–18 months later. Seed stage startups are now graded on a curve.

Startup Data: 4 Strategies Changing the Speed & Size of Your Series A

View from Seed

Once a startup has raised seed capital, plenty of theories and advice exist on how to successfully raise a Series A. Recently, we looked at our own portfolio at NextView Ventures to dig a little deeper on how startups actually raise that next round of financing.

Singapore’s ClearBridge BioMedics Raises $9 Million Series B

YoungUpstarts

Cancer research and treatment may just have gotten a shot up the arm – Singapore-based Clearbridge BioMedics has just announced that it successfully closed a S$9 million Series B financing round led by Vertex Venture Holdings Ltd, the wholly-owned VC arm of Singapore’s Temasek Holdings.

How to Up Your Board Meeting Game as a Founder [Deck Templates 2.0]

View from Seed

Today we’re thrilled to re-launch our most popular resource ever: board deck templates for seed-stage startups. Below, I unpack what I mean, as well as challenge some conventional thinking that gets in the way of a successful board meeting and board relationship… The Real Purpose of Your Board Meeting (and How This Looks in the Seed Stage). Said another way, seed-stage companies can be led by a founder; scaling companies require a CEO.

Walker Twitter Highlights: June 6th – 12th

Scott Edward Walker

Cheers, Scott Top 5 Tweets Very solid RT @cdixon : Notes from a class on raising seed financing [link] cc @skillshare (All these Brilliant People at) Facebook Make Me Sad – “all that talent is building something I just don’t care about” [link] Thiel: Tech Bubble? Twitter Highlights bubble conversion rights facebook Marc Andreessen seed financing Series A tech term sheets

Keep Term Sheets Simple for Quicker Cash to Spend

Startup Professionals Musings

When a company is at its earliest seed stage, the terms tend to be the least complex. As the company grows and the second or third group of investors comes in, the terms of each subsequent financing grow in size, scope, and the number of lawyers’ fingerprints on them.

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.

Keep Term Sheets Simple for Quicker Cash to Spend

Gust

When a company is at its earliest seed stage, the terms tend to be the least complex. As the company grows and the second or third group of investors comes in, the terms of each subsequent financing grow in size, scope, and the number of lawyers’ fingerprints on them.

I Stared at Startup Pitch Decks for 3 Straight Weeks – Here’s What I Learned

View from Seed

A few weeks ago, we launched two startup pitch deck templates for raising seed capital — part of NextView’s platform of exclusive startup resources. 5 Surprising Mistakes Found in Seed-Stage Startup Pitch Decks. #1:

Boston 333

The Rise of Chinese Venture Capital – (Part 3 of 5)

Steve Blank

This post is about the rise of Chinese venture capital and how it helped build the countries entrepreneurial ecosystem. The Rise of Chinese Venture Capital. SBIR and STTR programs, the Torch Program’s funding for new ventures was limited to seed funding the front end.

A Primer on Angel Investment ‘Simple Term Sheets’

Startup Professionals Musings

When a company is at its earliest seed stage, the terms tend to be the least complex. As the company grows and the second or third group of investors comes in, the terms of each subsequent financing grow in size, scope, and the number of lawyers’ fingerprints on them.

How DogVacay Literally Saved my Thanksgiving

Both Sides of the Table

He wanted to work in venture capital and I was new to the industry and in no position to hire anybody. Their business model was to help young companies accelerate their launch by helping assemble a team, do initial marketing, provide seed capital and help them raise financing.

Quickly Unpacking Two Recent Acquisitions (of Cylance; of PlanGrid)

Haystack

venture capital to date (more on this in a separate post), unfortunately relegating billion-dollar exits as “ho-hum” events to the technology crowd. 4/ The Big Winners: Cylance raised around ~$280M in financing, with large equity stakeholders being Khosla Ventures, Fairhaven, and Blackstone. 1/ A Pre-Seed Reminder: According to Crunchbase, PlanGrid was founded and went through Y Combinator in 2012. The company only raised a bit over $1M as seed capital.

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. So the new investment gets 60%, the founders get 39.9%, and the $1m of seed money gets 0.1%. We have no interest in re-investing alongside a VC firm that doesn’t respect a $1m investment by seed / angel investors.

The Rise of Chinese Venture Capital – (Part 3 of 5)

Steve Blank

This post is about the rise of Chinese venture capital and how it helped build the countries entrepreneurial ecosystem. The Rise of Chinese Venture Capital. SBIR and STTR programs, the Torch Program’s funding for new ventures was limited to seed funding the front end.

How a Seed VC Approaches Pre-Product Startups

View from Seed

The question arose: What is a seed VC’s process like when a company is pre-product? It’s often a good idea for founders to find a way to build something and get some early market validation before raising outside capital.

Good News! Angels Are Getting More Optimistic

ReadWriteStart

If you’re looking for seed or startup capital, the time to make your move is now. Last year, 42% of angel investment was seed and startup capital, reversing a two-year decline in the percentage of angel capital going to early-stage companies.

SXSW Startups: CargoX

Austin Startup

among them the Smart L/C and other trade finance solutions, and Smart Air Waybills for the air freight industry. But, we jumped that hurdle successfully last year, when we presented our idea to the world through an ICO platform, where we raised our seed capital to make it happen.

Four Winning Strategies from Series Seed to Series A

Genuine VC

A couple years ago, my partner Lee penned a blog post about the milestone benchmarks for startups raising a Series A round of financing. The five conditions for a Series A financing which he enumerated are: a core team ready to scale, demonstrable market size, repeatable cost effective customer acquisition, metric momentum, and plausible monetization. The four winning strategies for startups to go from Seed to A are: Build Scale/Momentum.

5 Reasons “Boring” Details Are As Essential As “Big” Ideas For Entrepreneurial Success

YoungUpstarts

A new entrepreneurial venture requires a great deal of assistance in terms of headhunting, business coaching, venture capital etc. Finance. Procuring venture capital funding or business angels who put up with seed capital or expansion capital can be helpful and exciting.

Entrepreneurs are Everywhere Show No. 29: Ajay Kshatriya and Steven Cohn

Steve Blank

Before co-founding Biota Technology , he was an investor and entrepreneur-in-residence at Seed Capital , a investing in science-based innovation. Switching from venture capital to startup founder required a different mindset, Ajay said: All day in a VC firm, you’re saying ‘no’.

Entrepreneurs are Everywhere Show No. 29: Ajay Kshatriya and Steven Cohn

Steve Blank

Before co-founding Biota Technology , he was an investor and entrepreneur-in-residence at Seed Capital , a investing in science-based innovation. Switching from venture capital to startup founder required a different mindset, Ajay said: All day in a VC firm, you’re saying ‘no’.

The Company Milestones Angel Investors Care About

Business Plan Blog

The most important principle of startup fundraising that every entrepreneur needs to know is: raise enough capital to achieve a set of milestones that will allow the company to attract the next round of investment. The Milestones Angel Investors Care About.

Stages of Social Enterprise Capital

Business Plan Blog

Survival or Establishment Stage: Once initial seed capital is drying up and no profit has yet been earned, the challenge for a social enterprise will be to expand the customer base and increase the market penetration while preserving capital.

How Crowdfunding is Affecting Angel Group Investment

Business Plan Blog

In September of this year, the SEC voted to overturn the ban on “general solicitation” that made it illegal for companies to publicly advertise that they are raising capital. Download our free Raising Capital from Angel Investors eBook.

Startups getting caught in No Man’s Land

BeyondVC

Increasingly I am seeing many startups who were ably seed funded get caught in "No Man's Land" between the seed round and a true Series A round led by a venture capitalist. This is happening because there are way too many companies raising seed capital but not enough executing their way to a Series A. This can happen for many reasons including not raising enough capital in the seed round to begin with and of course not getting your product out the door.

Startups getting caught in No Man’s Land

BeyondVC

Increasingly I am seeing many startups who were ably seed funded get caught in "No Man's Land" between the seed round and a true Series A round led by a venture capitalist. This is happening because there are way too many companies raising seed capital but not enough executing their way to a Series A. This can happen for many reasons including not raising enough capital in the seed round to begin with and of course not getting your product out the door.

TechWildcatters Applications Due March 19

The Startup Lawyer

The selected startups will get up to $25,000 in seed funding, intensive top-notch mentorship, and the opportunity to pitch to angel investors, venture capitalists and corporate dev teams at their biannual “Demo Day”. Tags: Startup Lawyer seed funding techwildcatters

TechWildcatters Applications Due March 19

The Startup Lawyer

The selected startups will get up to $25,000 in seed funding, intensive top-notch mentorship, and the opportunity to pitch to angel investors, venture capitalists and corporate dev teams at their biannual “Demo Day”. Tags: Startup Lawyer seed funding techwildcatters

Building a High-Tech Startup Team

Business Plan Blog

Aligning the Startup Team Strategy with the Capitalization Strategy. The single most important factor to raising capital for any tech startup is the management team. This is true for early stage funding as well as venture capital funding. Seed to Series A.