Seed Round

Also called Seed Funding and Seed

The first proper round most startups raise, meant to take a validated idea to product-market fit and early revenue. Sizes vary widely, and it is where dedicated seed funds and angels usually lead.

Why it matters

The seed is about buying enough runway to prove the model works. What you promise here sets the bar you have to clear to raise a Series A, so the story and the milestones need to line up.

For example

With a working product and early revenue, a startup raises a 6 crore seed led by a dedicated seed fund to reach product-market fit.

Go deeper

A Guide to Seed Fundraising Y Combinator · guide YC's end-to-end walkthrough of a seed round: how much to raise, from whom, on what instrument, and how the mechanics actually work. Open ycombinator.com →

How to Raise Money Paul Graham · essay Graham's field guide to the psychology and tactics of raising, why to get to a lead, why to be default alive, and how founders talk themselves into bad rounds. Open paulgraham.com →

How Funding Rounds Differ: Seed, Series A, Series B, and C Elad Gil · article A clear map of what each round is actually for and what you need to have proven to raise it, so you know where a seed sits in the sequence. Open blog.eladgil.com →

Related terms

Also in Starting Up

See how founders actually handle this on Raising your first round, part of the Starting Up hub.

eChai Partner Brands