Seed Round
Definition
Seed Round: A seed round is typically the first official equity funding stage for a startup, used to develop the product, hire initial team members, and validate the business model. Seed rounds typically range from $500K to $3M and come from angel investors, seed funds, or early-stage VCs in exchange for equity.
Example Usage
“We closed our $1.5M seed round led by Y Combinator, which gave us 18 months to find product-market fit.”
Common Misconceptions
Related Terms
Pre-Seed
Pre-seed is the earliest stage of startup funding, typically used to validate an idea, build an initial prototype, or conduct customer discovery. Pre-...
Series A
Series A is typically the first significant venture capital funding round after seed, usually ranging from $5M to $20M. At this stage, startups are ex...
Angel Investor
An angel investor is a high-net-worth individual who invests personal funds in early-stage startups, typically in exchange for equity. Angels often in...
Term Sheet
A term sheet is a non-binding document outlining the key terms of a proposed investment, including valuation, investment amount, board composition, li...
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