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. Also, it will take at least three months to raise the next round of financing, whatever it is (Series A, seed extension, etc.). Yet the next round of capital is going to be based on what was accomplished, certainly not by how much time elapsed.

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. The post When Is the Right Time to Raise Outside Seed Capital?

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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.” The true question, however, is if that level of spending will result in enough progress to successfully raise that next round of (hopefully) Series A capital. But before you get that far, there is one additional factor to consider to determine the right amount of seed capital to raise: an honest reflection of your fundraising ability.

[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. There are several tactical consequences of successfully raising venture capital that every founder MUST complete which, unfortunately, are often overlooked or pushed off until they create more work and stress for both entrepreneurs and their new investors.

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”?

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.

How to Approach Your First Board Meeting After Raising Seed Capital

View from Seed

We’ve previously shared our thoughts and sample slide templates for board meetings for seed stage startups as part of our Growth Guides series. If you haven’t checked those out, it’s worth doing so to get some ideas on agenda, format, content, and more, all for seed stage startup board meetings generally. Here are a few things to think about heading into your first board meeting post-seed fundraise: Set the Tone. For seed stage companies, that means one-plus years out.).

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.

What matters more?

Start Up Blog

The idea creator, versus the coder, versus the salesman, versus the marketer, versus the capital provider… they all have a unique and special relationship with the output that makes them rightly feel as though they are the input that really matters. We plant the seed of a lemon tree. The seed, the soil, the nutrients, the sun, the water or the attention? entrepreneurship business entrepreneurs Investing nature seed capital startups

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Mentorship over Money (and Office Space)

The Startup Lawyer

Pretty expensive seed capital. Tags: Startup Issues dallas incubator mobile applications seed capital With the success of Y Combinator and TechStars , several incubators (sometimes referred to as “accelerators&# ) have popped up everywhere. Some have done quite well. Here in Dallas, Tech Wildcatters had a strong class and is opening up applications for the Spring 2011 class later this month.

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”. Capital: Needing seed capital to support living expenses while bootstrapping, can make efficient use of limited capital, would generally be planning on self/angel/customer financing as a next step coming out of the program.

Business Loan? Budding Entrepreneurs Raise Their Chances

ReadWriteStart

Regardless of the scale or the diversity of a business — budding entrepreneurs running from pillar to post in search of seed capital or […]. Entrepreneurs Fund Small Business Startups Business Funding Capital Crowd Funding FinanceBusiness credit is the grease that keeps the wheels of a business enterprise moving. The fact that business enterprises rely on business loans from time to time is an obvious statement.

Is the Lean Startup concept of MVP dead?

VC Cafe

“After the crash, venture capital was scarce to non-existent. It was a nuclear winter for startup capital.” In a capital scarce environment following the Dot Com crash, startups needed to do more with less and survive long enough to generate revenue.

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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.

Public Service Announcement – Great Post by Chris Dixon

ithacaVC

Just read a great post by Chris Dixon called “So you want to raise seed capital… ” . Here it is. Enjoy. Dealing with VCs Public Service Announcements Startup Life

Are Individual Angel Investors Starting To Get Tapped Out?

Feld Thoughts

“I’ve had a few conversations recently about how individual seed investors are getting kind of tapped out – for a variety of reasons, but in general it’s not that easy to find people who are still actively investing. Lots of talk about Series A crunch but maybe there is a seed crunch too?” There is also a huge amount of seed capital available from seed funds. Venture Capital Angel Investing capital market seed

Why I Worry About Venture-Backed Mental Health & Addiction Startups

Hunter Walker

Traditional venture capital models lean into what’s called ‘power laws.’ Venture capital is a great instrument for high growth companies, or those who are very early in their development but intend to pursue a high growth strategy. And My Ask Of Investors In These Companies.

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. 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. First up: The Road to Raising Seed Capital: Crucial Steps to Know. The beginning of September always seems to mark the unofficial end of summer.

Why We Invested in Marlo

View from Seed

It’s no surprise to me that fast-forward a few months later, along with some seed capital from NextView and our syndicate partner Underscore to accelerate their efforts, the team has grown the service to reach dozens of companies and employees of all stripes, as featured in today’s Scott Kirsner Globe article. Meetings can suck. I know that you’ve been there. Stuck in a meeting which wasn’t productive. Not for you, and not for many (or even all) of the participants.

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. All we do is seed — we focus on it, we want to be the best seed partner, and we obsess over helping startups through that first, formative 18-24 month period. So The View From Seed is not for broad, sweeping statements, theoretical ideas, or debating IPO-ready companies.

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

View from Seed

Raising seed capital. (In The NextView podcast Traction explores the clever, creative, and atypical things entrepreneurs do to make initial progress against the odds. If startups should do things that “don’t scale,” then this podcast asks a simple question: What ARE those things? Past episodes include stories from founders of LinkedIn , DraftKings , General Assembly , Mattermark , Duck Duck Go , InsightSquared , and more. Subscribe on iTunes , SoundCloud , or Stitcher. .

Trueface raises $3.7M to turn camera data into actionable insights

ReadWriteStart

million in seed capital led by Lavrock Ventures with participation from Scout Ventures and Advantage Ventures. Today, we have millions of cameras deployed throughout various industries, organizations, and global borders around the world. However, with each of these individual cameras monitoring continuously and collecting vast amounts of data points, what good is it if not actionable or context applied?

Telstra Sets Up Startup Accelerator muru-D In Singapore

YoungUpstarts

muru - D will be hosting a roadshow in six Southeast Asian cities, including Bangkok, Hanoi, Jakarta, Kuala Lumpur, Manila and Singapore, and selected startups will receive S$40,000 in seed capital, space in muru - D Singapore’s central business district office and as well as introductions to world-class mentors, coaches and investors. Singapore’s startup scene looks set to become even more vibrant with the entrance of Sydney-based startup accelerator muru-D.

Pitch Deck Month: “Is It Working?” (aka the “Traction” Slide)

View from Seed

*This post is part of our “pitch deck” series where we dissect the seed stage pitch deck and discuss the ideal flow for a pitch. Seed stage VCs are realistic about how much traction a very raw company might have. At NextView we invest across the spectrum of seed stage companies so roughly 1/3rd of the companies we invest in are pre-product, roughly 1/3rd are post-product but pre-revenue, and perhaps 1/3rd have some very early revenue.

The 4 Keys to a Successful Angel Investment Strategy

VC Adventure

Your job is to put in seed capital. The company’s job is to grow the business and find new capital. With the increasing popularity of angel investment sites such as AngelList and CircleUp more and more people are making investments. I love this trend and have a longer form blog coming on the subject – which I think is massive positive force in the startup ecosystem. But this post is much shorter and to the point.

Things To Consider When Leaving School

YoungUpstarts

A business plan, some seed capital and a can-do attitude could well see you running your own empire before the rest of your mates have even graduated university. School is a wonderful time and for many it is one of the most incredible periods of their lives. It comes with a load of freedom, great friends and with not too much responsibility or pressure. The real question though is what happens when you leave school and fly the nest?

We Need More Entrepreneurs In Congress

Feld Thoughts

He helped launch six seed capital funds, three college accelerator programs, the StartFast Venture Accelerator. As we come to the end of a particularly noisy and contentious election cycle, a thought echoes over and over in my mind – we need more entrepreneurs in Congress. As I continue to believe that innovation and entrepreneurship are the key drivers to our economic future, it’s frustrating to hear such little cogent discussion around it.

A Quality Benchmark for Accelerators: The Global Accelerator Network

Feld Thoughts

Provide some sort of seed capital to their founders. Accelerators business david cohen entrepreneur global accelerator network Seed money TechStars United States Venture Capital When David Cohen and I came up with the idea for the Global Accelerator Network (GAN) in 2010, we counted roughly 100 accelerator programs around the US that were founded following the Techstars model.

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Startup Stock Options – Why A Good Deal Has Gone Bad

Steve Blank

As Venture Capital emerged as an industry in the mid 1970’s, investors in venture-funded startups began to give stock options to all their employees. Back then, when Angel/Seed investing didn’t exist, to get the company started, founders put a lot more on the line – going without a salary, mortgaging their homes etc. Startup Compensation Changes with Growth Capital – 12 Years to an IPO. And Mark Suster of Upfront Capital has a great post that summarizes these changes.

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. And seed VCs, especially as new firms were being established, were eager to encourage their portfolio startups to plant that flag in the ground publicly. It seemed like every other TechCrunch post was announcing a startups’s new seed financing round. Seed stage companies just aren’t announcing their rounds anymore.

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.

How We are Investing Through The Covid Correction

View from Seed

In all times, we are high-conviction, hands-on investors and make fewer investments on a per-partner basis than pretty much every seed fund in the country. . Our strategy is to be able to invest across the full spectrum of seed. We are just as comfortable investing the time and energy to be hands-on pre-seed investors writing a $200K check as we are leading a post-seed round with a $2M check.

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. These sources are a lot more forgiving of iterations and pivots than later-stage venture-capital funds. But to achieve scale, startups need risk capital. Filed under: Venture Capital. Venture Capital

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The Summer Solstice And Seed Stage Squeeze

Haystack

If you’ve been following my tweets lately, you’ve read some of my quick musings on the state of the seed market this summer. years of investing in the seed stage, I have never seen activity levels like I’m seeing today. They’ve all accepted that this is a new world of capital abundance and that the pistons driving the global economy are technology and network effects. Making angel investments, raising small seed funds.

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. The first wave of startups began when R&D centers and universities began to provide the technology and seed capital for new startups that were spin-outs or spin-offs. SBIR and STTR programs, the Torch Program’s funding for new ventures was limited to seed funding the front end.

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.

A Deep Dive into What Has Really Changed in Venture Capital

Both Sides of the Table

I’ve heard a lot of people question whether there is too much money in venture capital chasing too few great deals. “We’re Others believe that new business models are emerging that could replace venture capital all together. Every year I try to answer the question of “what has changed in the Venture Capital industry” and this year my colleague Chang Xu and I took a deep dive through the data and called many of our peers for confirmation.

Repeat Founders and the Risk of a False Positive

View from Seed

A number of blog posts recently have mentioned this, but we seem to be experiencing a rise in repeat founders starting new businesses and raising seed capital. You are unlikely to raise a small pre-seed, and are probably going to jump straight to a multi-million-dollar institutional seed or small A round. Because of strong execution and relatively more capital, you are able to generate some positive data from sheer force of good execution.

4 Things Every Startup Needs As Soon as Possible 

The Startup Magazine

Many failed entrepreneurs believed that as long as they had a large amount of seed capital, they could begin their startup and before long make it big. The truth is you’re going to need that seed capital, but you’re also going to need enough operating funds to keep you AND your business afloat until you start to make a profit. When it comes to starting your own business, there are tons of strategies you can follow all over the internet.

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. Along those lines, I’m excited to work with the NextView Ventures team over the next and final six months of my time at HBS to examine more of the data and help build institutional seed-stage funding into the fabric of the emerging Harvard tech cluster. Lee Hower, Rob Go, and David Beisel created NextView Ventures in 2010 to build a seed-stage fund that can serve as entrepreneurs’ first call specifically in the Boston ecosystem.

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Fundraising Debt And How To Avoid It

YoungUpstarts

Billions of dollars are being poured into companies that have yet to clear the value chasm, as entrepreneurs use early traction that isn’t necessarily financially-oriented, but shows a certain level of uptick or success, to raise capital and convince early stage investors that their horse is the one to bet on. Of course, a certain amount of initial capital without financial performance is absolutely necessary to get a business off the ground, especially in regulated industries.

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. The first milestone in a new startup’s financing is called ‘Seed Capital’ which refers to the initial investment raised by the founders from their friends and family, or commonly referred to as FFF (Friends, Family and Founders), who mostly use their personal assets. Raising Angel Capital.

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. Without DogVacay my Thanksgiving would have been ruined. That’s a fact. And I’m not an investor. I just had to tell this story.