How To Raise Seed Money Right (And Wrong)

YoungUpstarts

by Bedros Keuilian, founder and CEO of Fit Body Boot Camp. I need to admit to a personal bias right up front: I am not the biggest fan of borrowing seed money. DO Raise Seed Money Through Sales. DO Raise Money for Specific Features and Goals.

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.

Trending Sources

What every entrepreneur should know about financing right now

Version One Ventures

The ability to raise money no longer determines one’s fate. More money is flowing in from a new crop of angels, newly wealthy from a number of tech IPOs. AngelList makes it easier for founders to reach angels and there are hundreds of accelerators and incubators to choose from. And, we should expect angel activity to drop as new angels discover that returns from their seed investments aren’t so easy to come by.

How much capital should you raise?

Version One Ventures

Many new founders think that because they’ve secured their seed round, it will be easy to find investors for the next round, and the next… However, a startup needs to demonstrate significant progress between funding rounds. Take the money, but do it wisely.

Snaptrip case study – Solo founder hypothesis in action

The Equity Kicker

I’m reproducing in full here because it’s a great explanation of our solo-founder hypothesis and how we work more generally. Are you a solo founder with an idea? Snaptrip started as an idea, an excel spreadsheet and a passionate founder called Matt.

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. ” They are running out of money. The term sheet converts all the convertible debt into a post-money valuation of $100, essentially making the convertible debt worthless.

Should Founders Be Allowed to Take Money off the Table?

Both Sides of the Table

If a company has reached a level of success, has been around for a few years and you believe the company has potential to break out into a much bigger company then you should let the founders take money off of the table. Not FU money, but “feed the family&# money. On a panel that I sat on with Ron in LA in 2008 he stated that there were no circumstances in which the founder should take money off of the table.

Revisited: big VCs investing in seed rounds

Chris Dixon

A few years ago, the trend of companies raising smaller seed rounds combined with the emergence of new seed funds caused many big VCs to create seed investment programs. This triggered a debate among entrepreneurs and investors about whether it was risky for seed-stage companies to take small investments from large VCs. (I The second nuance can be counterintuitive: the danger of taking seed money is positively correlated with the reputation of the firm.

The Corrosive Downside of Acquihires

Both Sides of the Table

I’m supposed to believe that my best innovation can only come from scores of startup founders who just made millions and have now become CVOs at my company? Let’s assume $2 million in seed money. They founded their last company with no money in their pocket.

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

Both Sides of the Table

*. If you are a 20-something tech entrepreneur you could be forgiven for thinking that seed-stage investors, Angellist Syndicates and widely available angel money always existed. I was out to raise my first seed money in my second startup of $500,000.

Traction vs. Product

Rob Go

I’ve had a couple conversations with other investors recently around what a seed stage company needs to achieve to raise a series A. Some founders are able to do this, but most end up struggling, or doing it way too late.

How to Decrease the Odds That Your Startup Fails

Both Sides of the Table

We also know that even though many of us who are experienced in startup successes & failures look at businesses and say, “That will never work” (as many people said about Uber) or “You can’t make any money in that business” (as many said about WhatsApp or Dropbox) and of course some entrepreneurs pull off extraordinary things we never thought possible. Read plenty of “what went wrong” eulogies by founders and see what you can learn.

Entrepreneurshit. The Blog Post on What It’s Really Like.

Gust

You’d imagine that every founder was getting rich. Actually, positive outcomes for founders are quite rare. As a startup founder you rarely have much money in your bank accounts. Think about it – most entrepreneurs who manage to raise seed money or venture capital usually raise enough money for 12-18 months maximum. Raise money. Need money. More money. Yes, please give me money. It’s 4.50am. Sunday morning.

Monaco 101

Uber Cofounder Garrett Camp Raises $50 Million From Dream Team of Investors

Inc Startups

Investors include Google board member Ram Shriram, Virgin founder Sir Richard Branson, HP CEO Meg Whitman, Wordpress founder Matt Mullenweg, and author Tim Ferriss. Expa , Camp''s latest venture, calls itself "a startup studio that works with founders to develop and launch new products."

6 Tips for Coming Up With Your Million-Dollar Business Idea

Up and Running

David sold his recording equipment for $50,000 and they borrowed the rest of their seed money from a bank. “I realized in the early 1990s that there was no appropriate yoga for fitness professionals,” says YogaFit® founder, Beth Shaw.

Entrepreneurshit. The Blog Post on What It’s Really Like.

Both Sides of the Table

You’d imagine that every founder was getting rich. Actually, positive outcomes for founders are quite rare. As a startup founder you rarely have much money in your bank accounts. Raise money. Need money. More money. Yes, please give me money.

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3 Reasons To Seek Only What You Need During The Funding Process

YoungUpstarts

By Paul Jackson, founder of Worthworm. The startup scene is not short on fun ideas like Yo, but without the ability to justify the amount of money you are seeking and how it will be used to grow your company most investors are going to decline to open their wallets.

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Copenhagen's Opbeat Raises €1.75 Million From Balderton & Facebook, Instagram, and Spotify Co-founders

ArcticStartup

To help carry some of that burden, they''re announcing a new startup, Opbeat and a lot of money and smart people behind it. The company just raised an impressive amount of money form some impressive people.

CTO 2

Busted or Confirmed? 3 Common Myths About Starting A Business

crowdSPRING Blog

Fortunately, many startup myths revolve around three common topics (business plans, money, and unnatural hustle). Myth #2: You need a lot of money to start. Businesses do require some capital, but this doesn’t mean that every startup has to raise millions of dollars in seed money.

Why the New Seed Might Be a Bad Seed

This is going to be BIG.

About a year ago, I started hearing about the existence of a "pre-seed" round. The term "seed" implies the very beginning to me. If you can''t go to "seed" investors for your very first investment because you''re too early, that just seems weird to me.

A Year in Review: 2016

Version One Ventures

At the same time, seed money is still abundant due to the proliferation of micro VC over the past few years. They started with a simple question: if 100 startups raise a Seed round, how many of those will go on to raise a Series A, and then a Series B ? The challenge here is that founders – having an easy time raising their seed rounds and maybe Series A – can be lulled into thinking that each subsequent round will be just as easy.

I’m starting a Mastermind Group – who’s up for it?

47 Hats

A quick google makes it clear more than a few people have tried to make money one way or another out of Mastermind Groups. What I want to do is find up to 1o technical founders closing in on launching a new startup willing to meet once a week via Skype or probably Google+ Hangouts to brainstorm ideas, get and give feedback, and support each other.

Booming Companies That Should Inspire Entrepreneurs

Blogtrepreneur | Entrepreneur Blog

Uber Uber started out as a small San Francisco business that managed to generate $200,000 in seed money in 2009. With enough legwork, the founders were able to convince investors to add an additional $1.25

Next From Boomlagoon: Real-Time Multiplayer Battle Game

ArcticStartup

Antti Sten, co-founder of Boomlagoon , said the game will represent a player‐first development, approaching the community openly with a regular blog and forum interactions from developers, alongside the ability for players to vote on game changing mechanics through the new community hub. “We’ve

Making Sense of Seed Investment Data

Rob Go

In particular, a number of people commented on what looks like a dramatic rise and fall in seed deal volume over the past four years coupled with an increase in seed investment dollars. As a team, we’ve been thinking about what has been going on in the seed market in recent years. Answer first: we think that the seed market has settled somewhat, so charts like these don’t really cause much alarm but are generally consistent with what we’ve been seeing.

10 Reasons Why Capital Shouldn't Make Or Break Your Startup

Startup Professionals Musings

By John Williams Fast Company magazine recently reported that PayPal founder Paul Thiel is giving away $100,000 to twenty-four young men and women to finance startup businesses. Having no money can help you plan.

Guaana And Prototron Team Up To Link Ideas And Scientists

ArcticStartup

"The co-operation has been up and running for the few weeks and first ideas have already seen significant boost from sharp minds around the world," says Marko Russiver, co-founder of Guaana. "In

What’s the problem with too much funding?

Version One Ventures

With the influx of seed money, much has been written about the fact that start-ups that are taking far more funding than they need. As Paul Graham said , “startups take off because the founders make them take off. The most successful start-ups and founders are those that limit themselves to being very good at the right things. For example, check out Fred Wilson’s post where he compares funding a start-up to walking up a flight of stairs.

What’s the problem with too much funding?

Version One Ventures

With the influx of seed money, much has been written about the fact that start-ups that are taking far more funding than they need. As Paul Graham said , “startups take off because the founders make them take off. The most successful start-ups and founders are those that limit themselves to being very good at the right things. For example, check out Fred Wilson’s post where he compares funding a start-up to walking up a flight of stairs.

Inside Geoloqi's Unusual (& Fascinating) Acquisition

Inc Startups

There's nothing typical about founder Amber Case. We didn't want a giant pool of money and to be told, 'You either skyrocket or you die.'" And this isn't your typical M&A deal. Here's how it happened.

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

This is going to be BIG.

Did I mention it only took the founder a month? It's been said that long term returns are bad, but yet, where else are these institutions going to put the money to get growthy returns? The other day, I noticed an eye-catching headline: "Internet Funding Boom Ends as Fast as It Began".

7 Things You Should Know About Angel Investors

Inc Startups

You have more opportunities than ever before to raise seed financing. In fact, they''re shifting the financing landscape-- making it harder for a seed-funded firm to raise a Series A round of VC money. Here''s what you need to understand first.

Top Startup Advisor Paul Graham Just Warned Against Taking Google's Money

www.businessinsider.com

Your Money. Top Startup Advisor Paul Graham Just Warned Against Taking Googles Money. Grahams startups go through a months-long process of coaching to help them build products and raise money. The pattern is: youve already raised some money at a cap of $x. Your Money.

No Plan Survives First Contact With Customers – Business Plans versus Business Models

Steve Blank

He and his co-founder were both PhD’s in applied math who believe they can make some serious inroads on next generation search. We thought we’d take our plan and go raise seed money. We can’t raise money knowing our plan is wrong.”.

Should Startups Focus on Profitability or Not?

Both Sides of the Table

Being profitable allows you degrees of freedom you don’t have when you rely upon other people’s money. At this level, as a founder you feel SO CLOSE to profitability that many say, “I’m going to keep my costs really low this year to try and hit profitability.

Ungerminated: Trouble with Seeds

Passionate Intensity

Quantity, quality, and size of early-stage seed financing has recently given rise to speculation about a seed funding bubble. Money is available, some will say, easy to get. But these thoughts have been aired before and are now part of the usual rhetoric about the seed bubble.

Figuring Out FourSquare

Seeing Both Sides

At the same time, the foursquare team was incredibly skilled at applying lean start-up best practices, specifically: Product-obsessed founders : both Dennis and Naveen were consumed with the product. Raising money, scaling the team.

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Startup Business Investments Around The World

YoungUpstarts

Initially, you get funded by entrepreneur founders who want to develop a product, service, or solution which they think the market needs and demands. They aim to help small businesses take off the ground, and at the same time, make money from loan profits.

From “Good Idea” to Funded Tech Startup: Building Hallspot

Up and Running

He is also the founder of Hallspot , a new social networking site exclusively for college students that has raised hundreds of thousands in seed money and will launch on September 27 at Thorne’s alma mater, where more than 6,000 students have pre-registered for the service.

Why Kickstarter and crowdfunding can’t replace traditional investors

The Next Web

Editor’s note: This is a guest post by Aaron Pitman , an angel investor and founder and partner of RA Domain Capital. But, for startup founders looking to create a company built to last, is Kickstarter really the way to go?