The Startup Magazine

AUGUST 11, 2023

I will tell you brief details about seed stage funding, and deal sourcing on this page, so read the conclusion until the end. What exactly is the seed funding? The initial official fundraising round is called seed funding, and it comes immediately after the pre-seed investment stage.

Seed Stage 125

Seed Stage Technical Review Early Stage Due Diligence 125

Feld Thoughts

OCTOBER 15, 2013

Provide some sort of seed capital to their founders. Take a small amount of equity (usually ~6%) and overall have terms that are favorable to entrepreneurs. Have a strong management team who are typically proven entrepreneurs. Take no less than 5 and no more than 12 companies at a time.

Global 179

Global Networking United States Seed Money 179

BeyondVC

SEPTEMBER 29, 2011

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.

Seed Capital 133

Seed Capital Angel Investor Seed Money Startup 133

BeyondVC

SEPTEMBER 29, 2011

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.

Seed Capital 133

Seed Capital Angel Investor Seed Money Startup 133

Feld Thoughts

JULY 14, 2015

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. Here’s the scenario.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

Austin Startup

APRIL 23, 2010

The company was founded with seed capital from Austin Ventures. The amount of capital committed is described as “in the low millions,&# and the only reason it is that substantial is because the company acquired some intellectual property from other companies (including FiveRuns) to help accelerate the development of the product.

Intellectual Property 79

Intellectual Property Austin Early Stage Agile 79