seedround

A seed round, or seed financing, is the first formal round of external funding for a startup after initial founder capital and any pre-seed support. The goal is to provide enough capital to develop a product, validate the business model, and achieve early traction or milestones such as a minimum viable product, customer pilots, or initial revenue. The seed round represents a transition from concept to a company with tangible progress.

Investors commonly include angel investors, seed funds, early-stage venture capital firms, and accelerator programs. Financing is often provided as equity, convertible debt, or SAFEs (simple agreements for future equity), depending on jurisdiction and investor preference. The deal terms typically address valuation, post-money ownership, and any protections or governance provisions, negotiated on a case-by-case basis.

Amounts vary by market and company stage. In the United States, seed rounds commonly range from roughly $500,000 to several million dollars, while in other regions smaller sums may be typical. The chosen amount is tied to milestones, burn rate, and the anticipated pathway to a Series A, influencing post-money valuation and founder dilution.

Process and milestones usually involve due diligence, term sheet negotiation, and closing. Common milestones include completing the MVP, securing early customers or pilots, and establishing a clear path to scalable growth. Funds are allocated to product development, hiring, go-to-market activities, and operational needs.

Relation to other rounds: the seed round precedes a Series A or other later rounds. Some startups pursue seed extensions or bridge rounds if milestones are delayed. The seed stage carries high risk but offers a foundation for substantial later investment if targets are met.