Crypto/Blockchain/Web3.0/Metaverse Wizard & Startup Angel Investor | former APAC General Counsel & Recruiter | Loves to Make Friends & Network - ADD ME to Connect :)
Quick overview to Seed Fundraising for Startups
CoFounder at Panthera Advisors I Fundraising I M&A I 2x Best-Selling Author I Podcast Host
𝗧𝗵𝗲 𝗨𝗹𝘁𝗶𝗺𝗮𝘁𝗲 𝗚𝘂𝗶𝗱𝗲 𝘁𝗼 𝗦𝗲𝗲𝗱 𝗙𝘂𝗻𝗱𝗿𝗮𝗶𝘀𝗶𝗻𝗴 𝗳𝗼𝗿 𝗙𝗼𝘂𝗻𝗱𝗲𝗿𝘀 Raising seed capital is a critical milestone for startups looking to grow and compete. This guide provides key insights to help founders navigate the process: 1️⃣ Why Raise Seed Capital? Most startups require external funding to scale operations, develop products, and sustain growth. Bootstrapping is an option, but raising capital offers competitive advantages like hiring top talent and boosting marketing efforts. 2️⃣ When to Raise? Fundraise when you’ve identified your market opportunity, defined your customer, and achieved early traction. A 10% weekly growth rate over several weeks is a strong signal to investors. 3️⃣ How Much to Raise? Secure enough funding to last 12–18 months or achieve key milestones. This prepares you for the next round while minimizing dilution. 4️⃣ Funding Instruments: Convertible debt provides a cap and discount, converting to equity in future rounds. SAFEs (Simple Agreements for Future Equity) simplify the process by eliminating interest rates and repayment timelines. Equity rounds, while less common for seed stages, involve setting a valuation and issuing shares, often at a higher complexity and cost. 5️⃣ Finding Investors: Build relationships through warm introductions, demo days, or platforms like AngelList and Kickstarter. Focus on angels and VCs aligned with your vision. 6️⃣ Closing the Deal: Momentum is key. Secure commitments quickly and use standardized documents like YC’s SAFE to streamline the process. PS. check out 🔔 for a winning pitch deck the template created by Silicon Valley legend, Peter Thiel https://lnkd.in/ejp-Bhnu