Funding & Investment
Seed Funding
Also Known As
Seed RoundSeed Stage
Seed funding is the first significant round of venture capital financing, typically raised after initial product validation to hire a team, develop the product, and achieve early growth milestones.
What is Seed Funding?
Seed funding is the first major institutional funding round for most startups. It's called "seed" because it provides the capital to plant and nurture an early-stage business. Seed rounds have grown significantly over the past decade.
Seed Round Characteristics
| Aspect | 2024 Typical Range |
|---|---|
| Amount | $1M - $5M |
| Valuation | $5M - $20M |
| Stage | MVP with traction |
| Investors | Seed VCs, Angels |
What Seed Funds
- Engineering team (3-10 people)
- Product development
- Go-to-market execution
- 12-24 months runway
Seed Expectations
Investors typically expect:
- Working product (beyond MVP)
- Early revenue or strong engagement
- Clear target market
- Compelling founding team
- Path to Series A metrics
Studio Impact on Seed
Venture studio startups raise seed:
- 2x faster than traditional startups
- At higher valuations (studio validation)
- With stronger metrics (studio support)
- 84% success rate (vs ~50% traditional)
Example Usage
“After 6 months in the studio, the startup raised a $3M seed round led by a top-tier VC.”