How To Raise Seed Money Right (And Wrong)

YoungUpstarts

I need to admit to a personal bias right up front: I am not the biggest fan of borrowing seed money. In fact, when I founded Fit Body Boot Camp , I never took a single of cent of seed money, mainly because I wanted to maintain total control of my vision.

Don’t Forget Grants If You Need Early Seed Money

Startup Professionals Musings

In the US, many entrepreneurs see grants as “free money,” since they are not loans and don’t have to be repaid. If you meet all the requirements, complete all the paperwork, and submit your grant application today, it will likely be six to nine months before you see any money.

Don’t Forget Grants If You Need Early Seed Money

Gust

In the US, many entrepreneurs see grants as “free money,” since they are not loans and don’t have to be repaid. If you meet all the requirements, complete all the paperwork, and submit your grant application today, it will likely be six to nine months before you see any money. Professional help costs money. Money has always been tight for high-tech entrepreneurs who need to raise capital from investors willing to gamble on a new idea.

Sources of Seed Money

The Entrepreneurial Mind

Even thought money for entrepreneurial ventures is tougher to find than it was in the boom times, there still is money out there. Even seed stage ventures can find backing if they are patient, determined, and have a strong enough business model. Susan Schreter in an article at Business on Main identifies twenty seed stage funds from around the country. Business on Main sponsored post business on main seed funding susan schreter

My.02 on VC seed money by David Lee

David Lee

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.

How to Fund Your New Product Launch in 2017

Inc Startups

Need seed money for market proof? Here's where you can find it

The One Key to Seeding Your Disruptive Idea

Inc Startups

Everything you need to know about getting seed money and what qualifies your startup. Bringing Innovation to Market

Startup Seeks Angel: How to Meet Your Match

Wired Wired West

But you don’t have extra money to fund it. How Angel investor Business Funding General Assembly Investment Investor Los Angeles Marcus Filipovich Pasadena Angel pitch deck pitch investor Seed Funding Seed money Series A round Silicon Beach Startup company Tech Startups Venture capital You have a startup, or an idea for a startup, or a cousin with an idea for a startup. Nor do you have a ton of time if you want to keep your current job and the lights on.

How to deal with the Series A crunch

Version One Ventures

With headlines declaring that more than 1,000 seeded startups will soon be orphaned, it’s only natural that startups are concerned about the future funding landscape. Seed financing grew from 89 fundings in Q1 2009 to more than 500 in Q3 2012. That means there are a lot more seeded startups out there: an excess demand for a limited supply of Series A financings. Traditionally, I’ve advised startups to raise enough money to sustain them for 18 months.

Who exactly are angel investors?

Startup Economy

Early-stage VC : usually particiapates in Series A (and sometimes seed round on rare cases) to prove out the business model and test out the customer traction. Angel groups and seed investors. Angel/Seed investors : It's important to realize that different between angel groups and angel investors. Tags: Series A round Investment Business Seed money Angel investor venture capital Let's get some nomenclature out of the way.

2009 VC Fundraising Strategy

Startup Economy

Investor shift focus on existing portfolio companies by allocating more follow-on reserve; thus, less money for new companies reduce risks in early/seed stage capital allocation set a higher bar in funneling investment opportunities advertisement-based business model is no longer a viable option for most companies in internet/mobile holds more negoting leverage on valuation. Tags: Investment Seed money business model venture capital early stage

Supply And Demand

A VC : Venture Capital and Technology

I saw this chart on Semil ‘s blog this morning: What is shows is that as the amount of money raised (and deployed) in seed funds has grown over the last ten years, the ability of the companies that received those seed investments to raise a follow-on Series A round has declined (massively).

Demand 213

Triad gains substance-abuse treatment facility from state budget

Winston-Salem Journal State/Region News

The Triad is set to gain a new substance-abuse treatment center option, courtesy of $6 million in seed money placed in the 2018-19 state budget amendment

Commentary: Did Steve Jobs succeed because he lived in America?

EIN News

later, after receiving seed money from several venture capitalists, Apple became a $2 billion company with. parts of the world, and whether the United States will continue to be the technological center. history. Throughout his life, he registered 338 U.S. patents. Judging from international statistics, my Twitter

STEVE JOBS MAY HAVE FAILED ABROAD

EIN News

later, after receiving seed money from several venture capitalists, Apple became a $2 billion company with. parts of the world, and whether the United States will continue to be the technological center. history. Throughout his life, he registered 338 U.S. patents. Judging from international statistics, my Twitter

How Investors Think About Valuation of Pre-Revenue Startups

SoCal CTO

They might have some seed money and are thinking or raising a Series A based on success of an early release (MVP). He just post: Establishing the Pre-money Valuation of Pre-revenue Startups. A lot of my time is spent helping early-stage companies get to proof points so that they can raise capital. Because of this, I've always tried to stay up-to-speed on how early-stage investors look at valuation of companies. What are they really looking for?

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.

5 Tips To Make Investors Beg You To Take Their Money

Blogtrepreneur | Entrepreneur Blog

If that’s your situation, you want to focus on obtaining seed money first, and there are plenty of investors who specifically look for places to invest seed money. Venture capitalists and angel investors often provide between $250k-$1m in seed funding for startups.

5 Unusual Ways To Fund A Business Without Going Into Debt

YoungUpstarts

If you have a great idea for a new business but you need the money to make it happen, consider one of these unusual ways to fund your business without going into debt. Additionally, RocketHub will let you keep the money you raised, even if you didn’t meet your goal.

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.

Timing: When to raise seed funding.

Scalable Startup

Raising seed capital is a tricky business. High growth startup companies need seed money to get things going. They need the money to rent offices, hire staff, and establish their initial presence (website, incorporation, marketing). They risk money they can afford to lose.

It Doesn’t Matter How Much Money You’re Raising, It’s Still Hard

Instigator Blog

More and more companies are raising money , and valuations seem to be skyrocketing. And in many cases the amount of money you’re looking to raise isn’t particularly relevant. When VCs are ready to get a new fund off the ground they have to jump to our side of the table and raise the money. Big money. Alan Patricof of Greycroft wrote a telling article for Business Insider titled: You Think It’s Hard To Raise Money For A Company?

Your Startup Culture Can Transform You Into a Multi-Million Dollar Business

Up and Running

My first company, Digital-Tutors , grew from a startup in my living room with $54 of my own seed money into a multi-million-dollar business with customers around the world. I was proud of the fact that we never used any outside investment money to grow the company.

Innovation at Argonne National Laboratory Incubator

The Startup Magazine

Energy might be cheaper now than it was a few years back, but the need for innovation has never been greater. Chain Reaction Innovations. That’s why I’m so excited to serve as Director of the Chain Reaction Innovations (CRI) program at the U.S.

Series Seed or Convertible Note? Which one is more founder friendly? Which one do investors prefer?

Gust

Assuming the company is able to make effective use of the seed money to greatly increase the value of the enterprise, all of that value therefore accrues to the founder, rather than the investor. For example, let’s say the “real” value of a startup is $900,000, a seed investor puts in $100,000 on a Convertible Note with a 20% discount, and the company then raises a Series A round of $1 million at a $4 million ‘pre-money’ valuation.

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.

Doing The Right Thing In A Recap

Feld Thoughts

Six weeks ago I wrote a post titled The Silliness Of Recapping Seed Rounds. My answer was simple – I would have given the early seed investors some percentage of the company as part of the financing. Given the amount raised, the new financing, and the cap, I would have asked the seed investors to waive the terms and instead accept a smaller percentage of the company than they would have otherwise gotten. Investments fg angels recap seed

Fundraising pitches are not actually pitches.

Hippoland

But then one day, I pitched 2 seed partners at a VC firm. Although you do not need a deck to raise seed money, this is why I like to use a deck in my conversations with seed investors. The startup industry should stop using the word “pitch”.

Seed Bubble Watch 1st Half 2013

Possible Insight

Well, it’s been almost three years since I started watching for quantitative evidence of a “bubble” in seed-stage technology funding. Seed stage valuations have been flat since 2011. Rather, I want it maximally sensitive to sudden influxes in new seed money.

6 Tips To Tell Your Story Effectively

YoungUpstarts

Did the seed money really come from tips you made as a waiter, or did it have something to do with that gift your parents gave you? by Adam Witty, Founder and CEO of Advantage | ForbesBooks.

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. Every huge company started out as an entrepreneur with an idea and the willingness to work hard to reach his or her dream.

Designing a Corporate Entrepreneurship Program – A Qualcomm Case Study (part 1 of 2)

Steve Blank

The bootcamp requested that participants do what entrepreneurs do before requesting seed funding – Discover, Network and Accelerate. (In I ran into Ricardo Dos Santos and his amazing Qualcomm Venture Fest a few years ago and was astonished with its breath and depth.

Designing a Corporate Entrepreneurship Program – A Qualcomm Case Study (part 1 of 2)

Steve Blank

The bootcamp requested that participants do what entrepreneurs do before requesting seed funding – Discover, Network and Accelerate. (In I ran into Ricardo Dos Santos and his amazing Qualcomm Venture Fest a few years ago and was astonished with its breath and depth.

Build Entrepreneur Credentials Early and Wisely

Gust

Too many startups fail simply by missing the practical elements of money management, time management, and setting priorities. Most schools have business plan competitions, and even give out seed money to winners. Mark Zuckerberg at Harvard via ShinyShiny.tv.

8 Guidelines For Friends And Family Startup Funding

Startup Professionals Musings

Since they don’t know you (yet), their first integrity check on you as a person is whether your friends and family believe in you strongly enough to give you seed money for your new idea. Don’t take money from family or friends who can’t afford to lose it.

What early stage fundraising in 2018 looks like?

Hippoland

I thought it might be useful to do a high level overview of what fundraising in 2018 looks like at the pre-seed / seed stage. This means that traction bar has gone up for both pre-seed and seed stage companies. And can potentially raise lots and lots of money.

Why I cringe when you say you’re raising a $1.5m seed round.

Hippoland

Company A: -Raised a seed round of $500k -Now raising another seed round of $2.5m They raised a small seed round – perhaps to get them to some initial milestones, flesh out the idea, get some initial customers. “We’re raising $1.5m.” ” I cringe.

B2B 83

The Corrosive Downside of Acquihires

Both Sides of the Table

Let’s assume $2 million in seed money. If the money comes from professional investors it usually has a “liquidation preference” meaning that their money comes out before the founders or common stock. (If Get some famous angel or seed money.

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

Steve Blank

We thought we’d take our plan and go raise seed money. We can’t raise money knowing our plan is wrong.”. This includes how the product gets distributed to your customers and how money flows back into your company. No campaign plan survives first contact with the enemy.