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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.
I think the issue was mostly framed initially by Chris Dixon in his article The Problem with Taking SeedMoney from Big VC s. In these cases we proactively offer to lead their next round of financing. Like Brad Feld I’m syndication agnostic but I have a slight preference toward working with others.
A company raises $1m of seedmoney 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.
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