Seed Round
The first significant round of venture funding, typically $500K-$5M.
Definition
A seed round funds the transition from validated idea to initial product and early traction. Investors at this stage include seed-focused VCs, angel syndicates, and accelerator funds. Seed investors expect some evidence of product-market fit potential — early users, waitlist signups, LOIs, or a compelling MVP. Typical dilution is 15-25%.
Why it matters for founders
Seed funding gives you 18-24 months of runway to build your product, acquire early customers, and prove your business model works before raising a Series A.
Example
A startup with 500 waitlist signups and 50 paying beta users raises a $2M seed round at a $10M post-money valuation to hire 3 engineers and scale to 500 paying customers.
How Foundra helps
Foundra's insight cards (Target Customer Profile, Offer Draft, Proof Signals) are exactly the deliverables seed investors want to see during due diligence.
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Equity Dilution Calculator
Model how each funding round affects your equity stake as a founder.
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Get a rough valuation estimate based on revenue, growth rate, and industry multiples.
Startup Runway Calculator
Enter your cash on hand and monthly burn rate to see exactly when you run out of runway.
Related terms
Pre-Seed Funding
The earliest stage of startup funding, typically from personal savings, friends and family, or angel investors.
Pitch Deck
A presentation (usually 10-15 slides) that tells your startup story to potential investors.
Angel Investor
An individual who invests their own money in startups, usually at the earliest stages.
Equity Dilution
The reduction in a founder's ownership percentage when new shares are issued to investors.
Pre-Money Valuation
The value of your startup before receiving new investment.