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.

Magic Graph: How Much Seed Capital Should You Raise?

View from Seed

When thinking about how much seed capital to raise, we need a more sophisticated lens than just the old rule of thumb of “18 months of runway.” Let’s first consider a correlation between effort (on the x axis) resulting in more capital raised (y axis).

When Is the Right Time to Raise Outside Seed Capital?

View from Seed

The following is a real (but anonymized) email to us at NextView where a founder debates the timing of his seed raise: I met with someone today who said I should push to close a seed round before I launch the product. They also said it’s best to raise a seed (if you can) just before the launch so that you aren’t as dependent on the immediate results/traction and you can sell the vision a bit more. To raise or not to raise, that is the question.

[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.

How to Approach Your First Board Meeting After Raising Seed Capital

View from Seed

Personally, I think the first board meeting post-fundraise is less about the skeletons and more about founders and hands-on investors getting to work. We’ve previously shared our thoughts and sample slide templates for board meetings for seed stage startups as part of our Growth Guides series.

Can Pre-Seed Capital Hurt an Entrepreneur’s Chances to Raise Seed from VCs?

View from Seed

In the last year or so, the debate over the definitions of seed versus pre-seed capital (sometimes called genesis rounds) has exploded. Much digital ink has been spilled about what dollar amount constitutes a pre-seed and how that might affect a startup’s ability to go raise a “normal” seed round from institutional investors. Is there an amount you see companies having raised, before they get to you, where you think, “These folks have already raised seed”?

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 indicated that the most she could invest in the company before they would have to seek other sources of capital was $50k.

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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.

Accidental VC: The Most Dangerous Question for Founders to Overlook in Pitches

View from Seed

Founders must address distribution in their pitches both overtly and succinctly. Note that many were included in our pitch deck templates for raising seed capital. Accidental VC is a series of short posts written by me, Jay Acunzo.

Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

I like to say that “there are only co-founders” — it’s extraordinarily rare for a successful business to have just a sole founder. But not all co-founders are equal in terms of title, ownership, responsibilities, and so forth.

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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. But more so, these decks are about one thing: upping your board game as a founder. 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).

Got "Founder Fit?" If You Want Venture Capital, You Need It

Up and Running

A few weeks ago I spoke with Boris Wertz, founder of JustBooks, COO of AbeBooks and founding-partner of Version One Ventures. In For the purposes of our own discussion on female founders, the portfolio was the first thing I asked Boris about, and an obvious starting point.

Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

I like to say that “there are only co-founders” — it’s extraordinarily rare for a successful business to have just a sole founder. But not all co-founders are equal in terms of title, ownership, responsibilities, and so forth.

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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

How to calculate the equity split between co-founders in a startup

The Next Web

With all other things equal, that means that a 50/50 split between two co-founders (evenly split if there are more than two), or a 66/33 split based on the premium for coming up with the original idea, and for starting the initial development efforts and sourcing the original team.

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High Risk + Founders First + Boston: The Atlas Venture way

Fred Destin

In response to a question focused on his philosophy around seed investing, Fred Destin is clear on his priorities. “We We try and exist as the best source of seed capital that we can to as many entrepreneurs as possible. We want to be the best seed investor in Boston.

Kicking off NextView’s Startup “Fundraising Month”

View from Seed

Now, then, is one of the most opportune times of year to fundraise for Seed (and later) rounds of capital. As a result, for Founders, the next couple months until Thanksgiving becomes a fundraising season of sorts. Throughout the month, you’ll see blog posts that cover tips to help find the right VCs to pitch, how much capital to should raise, how to nail the pitch, as well as other directly relevant topics.

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. Don’t make everyone a founder.

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.

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.

Giving up the ghost early

David Cohen

There is four times as much seed capital in the venture market this year as there was 1 year ago. Because of this, it’s easier to attract seed funding than it has been in the past. The founders shut the business down, and either take a job or go out and start a new company with more of that plentiful seed funding. The thing I worry about is that the Facebook movie and tons of seed funding have made it almost too attractive to get into entrepreneurship.

How Hardware Startups Gain Initial Traction [Episode #14: Ben Einstein]

View from Seed

Past episodes include stories from founders of LinkedIn , DraftKings , General Assembly , Mattermark , Duck Duck Go , InsightSquared , and more. In our latest episode, Ben Einstein , Founder/Partner of BOLT , an early-stage VC investing in hardware startups, shares the stories of several connected devices and hardware companies and their tricks and challenges. Raising seed capital. (In

The Seeds Have Changed: An Epilogue to The New Venture Landscape

K9 Ventures

Almost two years ago, in a private/closed meeting with K9 Ventures’ LPs only, I claimed that: What was being referred to in the press as the “Series A Crunch” was not because fewer Series A deals were being done, but because there were too many Seed deals being done. This over-funding at the seed-stage created an increased supply of companies looking for Series A. The risk here is what I refer to as the curse of over-capitalization. Seed stage was super tough.

A Quality Benchmark for Accelerators: The Global Accelerator Network

Feld Thoughts

Provide some sort of seed capital to their founders. In addition to these eight criteria, all members follow the established ethos (give before you get; put entrepreneurs first) of accelerators in GAN, including a thorough review of an accelerator’s term sheets and numerous conversations to vet accelerator founders’ intentions and operational practices.

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Telstra Sets Up Startup Accelerator muru-D In Singapore

YoungUpstarts

“With its fast-developing startup ecosystem, pro-business policies and access to local capital, Singapore offers entrepreneurs a tremendous launch pad into Southeast Asia, which has a burgeoning population of more than 600 million people and GDP in excess of S$2.4

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. Startups with large, lifecycle VCs included in the seed round syndicate did not reach Series A faster than those who did not.

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.

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. The new money comes in at a pre-money valuation of $100, but includes a complete refresh of founder equity to 40% of the company. So the new investment gets 60%, the founders get 39.9%, and the $1m of seed money gets 0.1%. As part of this, all of the seed investors get a chance to participate in the round prorata to preserve their ownership percentage.

Harvard’s Big Moves to Improve Its Startup Spirit: An HBS Student’s Take

View from Seed

This is his first post to The View From Seed. Chief among them was an initial study done by EverTrue founder and CEO — and Harvard Business School grad — Brent Grinna. And done well, local seed capital can be the catalyst for the new Harvard engineering campus in Allston.

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Reading the Tea Leaves: Where Am I in My Seed Fundraise, Really?

View from Seed

One of the things we frequently discuss with founders is how to interpret and manage their dialogue with VCs when raising capital. We’ve written before on how to research partners , how to pitch the right investor at a given firm, and how to raise seed capital , generally speaking.

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. Some of these lessons might be useful because I’m not the founder who created those decks.

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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. Is there founder/market fit?

TinySeed Applications Open January 18th

Software By Rob

To catch you up, here’s a brief summary of TinySeed: TinySeed is a remote accelerator designed for SaaS founders seeking mentorship from world-class experts, community with other talented founders, and enough funding to live for a year.

Rolling Closes Versus Synchronous Closes

Haystack

If you have conviction : invest and help the founder finish their round with good intros to other investors. I have participated in many different types of seed rounds, but based on my experience of participating in over 100 seeds over the last 5+ years, I’d say the majority of those seed rounds (including around YC) were orchestrated by the founder to close on a specific date. ” Career Culture Technology Venture Capital

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. 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. Notable seed funds like SV Angel and Initialized backed the company early, and of course Sequoia led a large Series A in PlanGrid a few years after YC.

The Future of Health: How We Think About Investing in Healthier Living for Everyday People

View from Seed

We don’t seed companies that are developing drugs or medical devices that will require FDA approval. It’s a world that doesn’t fit our seed-focused model and fund strategy. Outside of life-sciences, we’ve noticed something interesting emerging: There is a huge dearth of seed capital for health care services and software-driven health-tech companies. The seed ecosystem for health companies is much less robust than in traditional software.

Exploring the NextView Platform? Start Here

View from Seed

One of the best and most positive movements proliferating around the tech community is what Product Hunt founder and CEO Ryan Hoover calls “building in public.” Instead, if you’re a seed-stage startup taking that first step in anything (and at the seed stage, you’re going from zero to one in everything), it’d be great to have a place to go for support, inspiration, and practical resources to make the process easier and clearer. – Why raise seed vs jump to Series A?

Singapore’s ClearBridge BioMedics Raises $9 Million Series B

YoungUpstarts

Other investors in this financing round include SPRING Seeds Capital , Clearbridge BSA and Lu Yoh Chie of Biosensors International , and existing shareholder BioVeda.

Fund Raising is a Means Not an End

Steve Blank

If you’re a scalable startup, you want to spend small amounts of money (seed capital) as you run experiments testing your hypotheses. A seed round can come from friends, family, Kickstarter, angels – and most importantly, early customers. Filed under: Venture Capital.

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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.

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. The first capital a young company receives usually takes the form of common stock, the same class of shares the founders hold.

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. The first capital a young company receives usually takes the form of common stock, the same class of shares the founders hold.

Fund Raising is a Means Not an End

Steve Blank

If you’re a scalable startup, you want to spend small amounts of money (seed capital) as you run experiments testing your hypotheses. A seed round can come from friends, family, Kickstarter, angels – and most importantly, early customers. Filed under: Venture Capital.

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