Raise money

What does an early-stage VC actually look for before writing a cheque?

The short answer

At seed it's mostly team, market, and evidence you can move fast and learn faster, because there's rarely enough traction to lean on numbers alone. Investors are underwriting your ability to build a huge company, so show insight, momentum, and why-you-why-now. The clearer your story and the tighter your process, the more real the FOMO.

Go deeper, your way

3 hand-picked resources, 3 link-checked. Pick how you want to dig in.

▶️ Video
✓ Link checked Free Beginner

Why we picked it A concise video lecture that walks through the key concepts and mechanics of running a fundraising process, from a YC partner who has coached thousands of founders. Great if you'd rather watch than read.

Fundraising Fundamentals (Startup School)

On Y Combinator Startup Library by Geoff Ralston 40 min

  • Warm intros and social proof (a strong first cheque) do most of the heavy lifting
  • Build a ranked target list and run the process concurrently to build momentum
  • Investors at seed underwrite team and market more than metrics
Open ycombinator.com →
🎧 Podcast
✓ Link checked India Free Intermediate

Why we picked it A leading early-stage Indian VC firm answering the questions founders wish they could ask a VC face-to-face, including how they pick startups and why pitch decks fail. Direct from the people writing the cheques in India.

Prime Venture Partners Podcast: Fundraising Masterclass for Founders

On Prime Venture Partners Podcast by Prime Venture Partners 30-50 min per episode

  • Learn how an Indian early-stage fund actually filters and selects the few startups it backs
  • Understand common pitch mistakes from the investor's side of the table
  • Get realistic expectations on the Indian seed process and what earns conviction
Listen on Spotify open.spotify.com →
📄 Article
✓ Link checked Free Intermediate

Why we picked it The most quoted essay on the mechanics of fundraising, distilled from YC Demo Day advice. It reframes fundraising as a sales process with clear rules that still hold up years later.

How to Raise Money

From paulgraham.com by Paul Graham 45 min read

  • Be in fundraising mode or not; don't half-do it while running the company
  • Talk to investors in parallel to create real competition and momentum
  • A 'maybe' is usually a polite no; get to a real yes or move on
Open paulgraham.com →

Terms in this answer

Venture Capital

People also ask

How does seed fundraising actually work, step by step? You build enough proof (traction, team, or a compelling wedge) to make investors believe, then run a tight, time-boxed process where you talk to ma... Beginner 3 resources → How much money should I raise at seed, and how much equity do I give up? Raise enough to hit a meaningful milestone with buffer, typically 18-24 months of runway, and plan to sell roughly 10-20% of the company at seed. D... Intermediate 3 resources → How do I find and get intros to angel investors and seed funds? Warm intros beat cold outreach massively, so map your network and get founders in each investor's portfolio to introduce you. Build a target list r... Intermediate 3 resources → How do I create momentum and FOMO so investors commit instead of stalling? Run the whole process in parallel and time-boxed so investors feel a real deadline and real competition, because a 'maybe' is almost always a polit... Advanced 3 resources → How is raising a seed round in India different from the US? The instruments and paperwork differ: India commonly uses the iSAFE (a CCPS-based cousin of the US SAFE) and CCPS-heavy term sheets to fit Indian c... Intermediate 3 resources → What should be in my seed pitch deck, and what kills a deck in the first 30 seconds? Ten to twelve slides: problem, insight, product, why now, traction, market, business model, team, competition, ask. Lead with what you have actuall... Beginner 3 resources →

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Also in How Founders Use AI

How founders actually use AI for this, over in Fundraising.

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